Scenario 17.4 Consider the Following Information

question 49

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 not in place, the insurer would not be willing to insure against the flood for any premium less than:

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

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Definitions:

Prejudice

An unjustified negative attitude toward an individual because of her or his membership in a group.

Adolescent

Refers to the period of development from puberty to adulthood, typically involving growth spurts, hormonal changes, and psychological adjustments.

Unjustified Negative Attitude

An unfair or baseless negative outlook or bias held against someone or something without sufficient reason.

Discrimination

Unfair treatment of individuals based on their race, age, gender, or other attributes, rather than on individual merit.