Question: Hello, I am looking at question 2 in https://www.coursehero.com/file/43188485/Assignment-2docx/ The problem states: Assume that the daily probability of a major earthquake in Los Angeles is

Hello,

I am looking at question 2 in https://www.coursehero.com/file/43188485/Assignment-2docx/

The problem states:

Assume that the daily probability of a major earthquake in Los Angeles is 0.07 percent. The chance that your computer center will be damaged during such a quake is 5 percent. If the center is damaged, the estimated damage to the computer center will be $4.0 million.

Calculate the expected loss in dollars.

The answer says that the calculation is .07 * .05 * 4,000,000 = $14,000

Isn't .07 percent = .0007 (not .07)?

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