Multiple Choice
Acme Company has three identical manufacturing plants,one on the Texas Gulf Coast,one in southern Alabama,and one in Florida.Each plant is valued at $200 million.Acme's risk manager is concerned about the damage which could be caused by a single hurricane.The risk manager believes there is an extremely low probability that a single hurricane could destroy two or all three plants because they are located so far apart.What is the maximum possible loss associated with a single hurricane?
A) $0 million
B) $200 million
C) $400 million
D) $600 million
Correct Answer:
Verified
Correct Answer:
Verified
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