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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
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?
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