Scatterbrain Samantha often forgets to lock her house. This has
caused the probability of a burglary to be 30%. If her house gets
broken into, she faces a property loss of $10,000, otherwise she
gets to keep her $100,000. If Samantha is offered an insurance
policy for her house to protect her from loss at $3,000, what is
her expected wealth.
a) $87,000
b) $99,000
c) $97,000
d) $80,000