Asked by Jasmine Davis on Sep 24, 2024
Verified
Would Tom install the safety equipment?
A) Yes because it costs him less than it is worth
B) Yes because it costs him more than it is worth
C) No because it costs him more than it is worth
D) No because it costs him less than it is worth
Safety Equipment
Tools and devices designed to protect individuals from injury or harm, especially in workplaces.
Expected Loss
The anticipated amount of loss a party might suffer in an investment or venture, taking into account the likelihood of various outcomes.
Probability
The likelihood of a particular event happening.
- Assess the economic consequences associated with the implementation of safety apparatuses in the work environment.
Verified Answer
BD
Brittany Dietrich3 days ago
Final Answer :
A
Explanation :
The expected cost of an accident without safety equipment is 20% of $500,000, which is $100,000. With the safety equipment, the probability drops to 10%, making the expected cost $50,000. The reduction in expected cost is $50,000, which is more than the $20,000 cost of the equipment, making it a worthwhile investment.
Learning Objectives
- Assess the economic consequences associated with the implementation of safety apparatuses in the work environment.