Fred is contemplating stealing a car. He works as an auto
mechanic and earns $700 per week. The penalty for auto theft is 3
years in prison and a $5,000 fine. The probability of being caught
and arrested by police for the crime is 40%. The probability of
being convicted and sentenced in the court system for the crime is
75%. What is Fred’s undiscounted expected punishment cost? Select
one: a. $10,920 b. $14,490 c. $22,640 d. $34,260