Exhibit 5-16

Multiple Choice

Exhibit 5-16.According to geologists,the San Francisco Bay Area experiences five earthquakes with a magnitude of 6.5 or greater every 100 years. Refer to Exhibit 5-16.What is the probability that no earthquakes with a magnitude of 6.5 or greater strike the San Francisco Bay Area in the next 40 years?

A) 0.0067
B) 0.0337
C) 0.1353
D) 0.2707