If you have a 30% chance of having your car stolen next year and the average loss of a stolen car is $12,000, then the expected cost of the loss to you would be

Name: If you have a 30% chance of having your car stolen next year and the average loss of a stolen car is $12,000, then the expected cost of the loss to you would be
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Question

Quizplus · Accepted Answer

The expected cost is calculated by multiplying the probability of the event by the loss amount: 0.30 * $12,000 = $3,600.

If You Have a 30% Chance of Having Your Car