An Individual Owns a $100,000 Home

question 17

Essay

An individual owns a $100,000 home. She determines that her chances of suffering a fire in any given year to be 1/1000 (0.001). She correctly calculates her expected loss in any year to be
$100. Explain why this really isn't a good way to measure her potential for loss.

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Definitions:

Civil Wars

Conflicts between groups within the same country or state, often over political, social, or ethnic differences.

Confederacy

A union of states or groups united for a common purpose, often used to refer to the 11 southern states that seceded from the United States in 1861-1865.

Birthright Citizenship

The legal right to citizenship for all children born in a country's territory, regardless of parental nationality.

Whiteness

A social and political construct concerning the practices and ideologies that reinforce the power and privilege of white people in society, often at the expense of non-white peoples.