You Are Experimenting with a Process for Producing High-Energy-Density Batteries

question 46

Multiple Choice

You are experimenting with a process for producing high-energy-density batteries. You have a contract with the government to deliver a batch of 20 batteries, due today. If you deliver them on time and they are all functional, you will get $100 000. Each battery has a 1% chance of being defective, and if any of them are defective, the government will not pay you the $100 000, but will fine you $10 000. What is the expected value to you of your contract with the government?

• A)-$1 821
• B)$79 970
• C)$81 791
• D)$82 645
• E)$86 777

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Definitions:

Environmental Racism

The practice of situating industrial operations and waste disposal in minority communities leading to disproportionate environmental hazards and health risks.

Informal Rulemaking

The process used by federal agencies to develop regulations, involving a notice-and-comment period without the formalities of a trial-type proceeding.

Concise General Statement

A brief, comprehensive description that captures the essence or main points of a subject.

Proposed Rule

A regulation or policy put forward for consideration or adoption by a governmental entity or agency.