Scenario 17.4 Consider the Following Information

question 80

Multiple Choice

Scenario 17.4
Consider the following information:
StowUrStuff Storage is located slightly below sea level in a coastal town. It could build and maintain a flood control system around its property at an annual cost of $1000, and if it did so, the probability of a flood's doing $1,000,000 in damage during the year would be .005. With no flood control system, the probability of such a flood would be .01.
-Refer to Scenario 17.4. If the flood control system were in place, the firm could insure against a flood for an annual premium of:

• A) $5,000.
• B) $10,000.
• C) $100,000.
• D) $200,000.
• E) $1,000,000.

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Definitions:

Potential Employee

An individual who is being considered for employment within an organization, typically during the recruitment and selection process.

Perceiver Expectations

The assumptions or beliefs that an observer holds about a situation or individual that can influence their perception and interpretation.

Pygmalion Effect

The phenomenon where higher expectations lead to an increase in performance.

Michelangelo Effect

The phenomenon where close partners support one another towards achieving their ideal selves, inspired by Michelangelo's idea of sculpting to reveal the ideal form within.