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Tanya is considering ways to avoid accidents on the work floor of her factory. If an accident does occur, it will cost her $500,000 in
Tanya is considering ways to avoid accidents on the work floor of her factory. If an accident does occur, it will cost her $500,000 in damages. Installing safety equipment will decrease the probability of an accident occurring from 20% to 10%. However, the equipment costs $35,000 to install. Should Tanya install the safety equipment? O Yes because it costs her less than the expected reduction in damages O Yes because it costs her more than the expected reduction in damages O No because it costs her more than the expected reduction in damages O No because it costs her less than the expected reduction in damages
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