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    Microeconomics Study Set 44
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    Exam 20: Uncertainty, Risk, and Private Information
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    Suppose the Probability of a Major Theft at a Hotel
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Suppose the Probability of a Major Theft at a Hotel

Question 90

Question 90

Multiple Choice

Suppose the probability of a major theft at a hotel is 1%, while the probability of an earthquake hitting the hotel is 2.3%. The probability that both would occur on the same day is therefore:


A) 0.00023%.
B) 0.0023%.
C) 0.023%.
D) 2.3%.

Correct Answer:

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