Solved

Speeding in the Town of Chanceville Traditionally Results in a $300

Question 32

Multiple Choice

Speeding in the town of Chanceville traditionally results in a $300 fine. The judge at the traffic court, however, decides to change the policy. People found guilty of speeding have the choice of paying the $300 fine or spinning a wheel. There is an 80 percent chance that the needle on the wheel will land on a $400 fine and a 20 percent chance that the needle will land on "No Fine." The city leaders of Chanceville probably will _____ this new policy because _____.


A) oppose; it will result in a 20 percent loss in revenue
B) oppose; it will result in an 80 percent loss in revenue
C) support; most people will pay an average fine that is $20 higher
D) be indifferent about; most people will continue to pay the $300 fine instead of take a risk

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions