When Carla had to choose one among three vacation destinations, she chose one that scored low on an important attribute of being tourist friendly. She chose that location because it was the least expensive and the most convenient
to travel to. In the given scenario, which of the following decision rules has Carla used to choose a vacation
destination?
a. The conjunctive rule
b. The disjunctive rule
c. Compensatory rules
d. Noncompensatory rules

An insurance company estimates the probability of an earthquake in the next year to be 0.0015. the average damage done to a house by an earthquake it estimates to be $90,000. if the company offers earthquake insurance for $150, what is company`s expected value of the policy? hint: think, is it profitable for the insurance company or not? will they gain (positive expected value) or lose (negative expected value)? if the expected value is negative, remember to show "-" sign. no "+" sign needed for the positive expected value