Two buildings are located close together at a production facility. The probability that either of these buildings will experience a fire loss is 4 percent.
However, if one building has a fire, the probability that the second building will have a fire is 60 percent. What is the probability that both buildings will have a fire?
A) 1.6 percent
B) 2.4 percent
C) 8.0 percent
D) 64.0 percent
Question 2
A large property and liability insurance company merged with a bank and then acquired a stock brokerage company. This type of merger and acquisition activity is categorized as
A) insurance company consolidation.
B) cross-industry consolidation.
C) financial risk management.
D) insurance brokerage consolidation.
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