Scenario 5.5: Engineers at Jalopy Automotive Have Discovered a Safety Flaw in Flaw

question 39

Multiple Choice

Scenario 5.5:
Engineers at Jalopy Automotive have discovered a safety flaw in their new model car. It would cost $500 per car to fix the flaw, and 10,000 cars have been sold. The company works out the following possible scenarios for what might happen if the car is not fixed, and assigns probabilities to those events:
Scenario Probability Cost
A. No one discovers flaw .15 $0
B. Government fines firm .40 $10 million
(no lawsuits)
C. Resulting lawsuits are lost .30 $12 million
(no government fine)
D. Resulting lawsuits are won .15 $2 million
(no government fine)
-Refer to Scenario 5.5. The expected cost to the firm if it does not fix the car is:

• A) $0.
• B) $24 million.
• C) $7.9 million.
• D) $2 million.
• E) $3.6 million.

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Definitions:

Major Organic Product

The primary product formed in the largest quantity during an organic chemical reaction, often favored due to kinetic or thermodynamic controls.

Methoxycyclohexane

Methoxycyclohexane is an organic compound featuring a cyclohexane ring with a methoxy (-OCH3) functional group attached, utilized in various synthetic organic chemistry applications.

Meso Ether

An ether that is part of a molecule having chiral centers but is overall achiral due to a plane of symmetry.

Enantiomeric Ethers

Ethers that are mirror images of each other but cannot be superimposed, typically having asymmetric centers that lead to chiral properties.