GAM & Co want to give its employees cars. It is said to improve productivity as employees would arrive on time to work. If every employee gets a car, sales will improve by 100K, and if they dont sales remain the same. However, it should be

noted that if they damage the property there is a 20K loss. As an alternative, they are willing to provide them with scooter, which are cheaper and not as fast, therefore they will only generate 80K and the damages in a crash would be 10K. The company is situated in England, where weather conditions arent very favorable; the probability for it to rain on any given day during the year is 29% and 6.5% to snow. GAM & Co has investigated the probability of weather conditions against the probability of crashing in order to decide if they should buy the car. They are also interested in the severity of the crash; there are two possible outcomes, crash or crashing with injuries. If the crash results in injuries, the company willl need to pay an additional 5K for hospital fees They want to hire an expert to analyze the probability of crashing the car under the given weather conditions.. They have a record of 90% for predicting crashes correctly under any weather conditions, 85% for crashes with injuries, and 80% of predicting a non-crash in any conditions. The weather expert will ask for 2K. This is the statement if it helps