A Car Owner Must Decide Whether She Should Take Out

question 17

Multiple Choice

A car owner must decide whether she should take out a $100-deductible collision policy in addition to her liability insurance policy. Records show that each year, in her area, 17% of the drivers have an accident that is their fault or for which no fault is assigned, and that the average cost of repairs for these types of accidents is $1200. If the $100-deductible collision policy costs $100 per year, would she save money in the long run by buying the insurance or "taking the chance"? (Hint: Find the expected values if she has the policy and if she doesn't have the policy and compare them.) ​

• A)by buying the insurance
• B)by taking the chance

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Definitions:

Culturally Endorsed Leadership

Leadership qualities or styles that are widely accepted and promoted within a given culture or society.

GLOBE Project

A cross-cultural research initiative exploring societal culture and leadership in over 60 countries, aimed at understanding global work dynamics.

Key Findings

Important discoveries or conclusions that emerge from a research study, investigation, or analysis.

Charismatic/Value-Based

A leadership style that is rooted in the ability to inspire and motivate followers through one's charisma and commitment to core values and ethical principles.