If there is a 90 percent chance that an observed variance is random, the cost of conducting an investigation is $1,000, the cost to correct a variance if the investigation reveals a nonrandom cause, and the amount of loss a company expects to incur if it does not investigate a variance that had a nonrandom cause is $30,000, what is the expected cost of not investigating the variance?
a) $30,000.
b) $1,500.
c) $0.
d) $3,900.
e) $3,000.