​Use the Following Setup for Question

question 35

Multiple Choice

​Use the following setup for question
Tom wants to avoid any accidents on the work floor of his factory.If an accident does occur,it would cost him $500,000 in damages.Installing safety equipment would decrease the probability of an accident occurring from 20% to 10%.However,the equipment costs $20,000 to install. 
-​What is his expected loss after installing the safety equipment

• A)​$20,000
• B)$50,000
• C)$100,000
• D)​$125,000

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Definitions:

Appliance Stores

Retail outlets specializing in the sale of electrical or mechanical devices used in the home or for personal care.

Manufacturer's Branch

A local office or division of a manufacturing company responsible for distributing its products in a specific geographical area.

Wholesaling Activities

Encompasses the operations involved in selling goods or merchandise to retailers, other merchants, or industrial, commercial, and institutional users, but not to consumers directly.

Producer

An entity or individual that creates goods or services, ranging from physical products to digital or intellectual properties.