Multiple Choice
Scatterbrain Samantha often forgets to lock her house.This has caused the probability of a burglary to be 30%.If her house gets broken into,she faces a property loss of $10,000,otherwise she gets to keep her $100,000.If Samantha is offered a full coverage insurance policy for her house at $2000,would she buy the insurance?
A) Yes because she gets to now enjoy her wealth risk-free
B) No,because she can take the risk and be better off
C) Yes,because she gains on average with the insurance
D) Both A&C
Correct Answer:
Verified
Correct Answer:
Verified
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