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An engineer decided to make a careful analysis of the cost of fire insurance for a $100,000 home. Considering the following decision tree, what probability

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An engineer decided to make a careful analysis of the cost of fire insurance for a $100,000 home. Considering the following decision tree, what probability makes the two options have equivalent expected values? Cost values are shown in the decision tree. -$800 Option 1: Buy insurance Decision: Buy insurance? No fire loss $0 Fire loss? -$100,000 Fire loss p=? O A. 0.005 O B. 0.007 O C. 0.009 O D. 0.006 O E. 0.008

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