Question

Two vehicles are approaching each other on a 2 way highway when a steering failure occurs on vehicle A. At this point, driver A can take evasive action and if not, driver B may take evasive action. If driver A does (with a probability of 0.7), no collision will occur. If driver A does not, there is a probability of 0.8 that driver B will take evasive action. If driver B does, the probability of a head on collision is 0.2; if he does not, the probability of a collision is 0.9. If driver A does not take evasive action and there is no head on collision, the probability that vehicle A hits a roadside obstruction is 0.8. Vehicle B is unaffected in this case. In the event of a head on collision, the total damage to the two vehicles would be $16,000. Damage to vehicle A from hitting a roadside obstruction would be $5,000.

Answer 1

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