Problem: Lannister Inc. is a carriage manufacturer that produces 2 million products per year. During manufacturing Lannister become aware of a defect in the carriage brakes that has a 20% chance of causing losses. It would cost Lannister $20 per carriage to fix and the defect is projected to cause accidents that total $100 million in property damage.
As a risk manager with a UW RMI education, you apply a Hand Rule Analysis to provide guidance in this situation.
Lannister should reasonably be willing to spend how much in order to fix the defect under negligence? (You do not need $ signs or commas)