| Tag | Value |
|---|---|
| file | Probability_uva-elementary-probability-1141-en_uva-elementary-probability-1141-en |
| name | uva-elementary-probability-1141-en |
| section | Probability/Elementary Probability |
| type | schoice |
| solution | TRUE, FALSE |
| Type | Conceptual |
| Language | English |
| Level | Statistical Literacy |
| IRT-Difficulty | 0.532 |
| p-value | 0.9046 |
Daan pays €100 a year for the insurance of his house. He thinks that the probability is 0.1 that in the next year his house will need to be needs to be repaired, and the probability of more than one repair is then 0. A repair costs €3000 if he does not take insurance, and costs nothing if he does take insurance. Should Daan take insurance if he acting rationally?