Multiple Choice
Use the following setup for question
Tom wants to avoid any accidents on the work floor of his factory.If an accident does occur,it would cost him $500,000 in damages.Installing safety equipment would decrease the probability of an accident occurring from 20% to 10%.However,the equipment costs $20,000 to install.
-Would Tom install the safety equipment?
A) Yes because it costs him less than it is worth
B) Yes because it costs him more than it is worth
C) No because it costs him more than it is worth
D) No because it costs him less than it is worth
Correct Answer:
Verified
Correct Answer:
Verified
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