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Suzette works in downtown L. as a copy-shop manager, and she earns $100 per day. She drives to work, and parking is expensive at the nearby lot: $19...
Suzette works in downtown L.A. as a copy-shop manager, and she earns $100 per day. She drives to work, and parking is expensive at the nearby lot: $19 per day. The company that owns the parking lot also owns many others, and it is understaffed. Instead of putting an attendant at each lot, it asks lot users to put the money in a special box on the premises along with their car license number. To check on compliance, it sends an employee randomly to its different lots during the week. If a car is found parked in the lot whose owner hasn't paid, a fine of $36 is levied. The chance of being caught if the owner doesn't pay is 20% (i.e., the probability is 0.20).