Question
In: Statistics and Probability
GAG is considering giving every customer of one of their subsidiaries a free defensive driving course....
GAG is considering giving every customer of one of their subsidiaries a free defensive driving course. The course teaches drivers to completely avoid: (1) side-swiping other vehicles (for which the company spends $4000 per accident) and (2) hitting fire-hydrants (for which the company spends $500 per accident). The following likelihoods have been previously determined: • There is a 1 in 100 chance that a driver will be involved in a side-swiping (1) accident. • There is a 1 in 10 chance that a driver will be involved in hitting a fire-hydrant (2).
Is offering this course worth it if the course costs GAG $100 per participant?
Solutions
orchestra answered 1 year agoRelated Solutions
GAG is considering giving every customer of one of their subsidiaries a free defensive driving course....
GAG is considering giving every customer of one of their
subsidiaries a free defensive driving course. The course teaches
drivers to completely avoid: (1) side-swiping other vehicles (for
which the company spends $4000 per accident) and (2) hitting
fire-hydrants (for which the company spends $500 per accident). The
following likelihoods have been previously determined: • There is a
1 in 100 chance that a driver will be involved in a side-swiping
(1) accident. • There is a 1 in 10...
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