Q4. Ms. İpek wants to make auto insurance for her car worth 250,000 TL. Historical data shows that while the probability

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Q4. Ms. İpek wants to make auto insurance for her car worth 250,000 TL. Historical data shows that while the probability

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Q4 Ms Ipek Wants To Make Auto Insurance For Her Car Worth 250 000 Tl Historical Data Shows That While The Probability 1
Q4 Ms Ipek Wants To Make Auto Insurance For Her Car Worth 250 000 Tl Historical Data Shows That While The Probability 1 (28.75 KiB) Viewed 10 times
Q4. Ms. İpek wants to make auto insurance for her car worth 250,000 TL. Historical data shows that while the probability of Ms. İpek to have an accident of 50,000 TL in a year is 0.10, the probability of an accident of 200,000 TL is 0.05. If the utility function is u(x)=√x, how much will Ms. İpek be willing to pay for this insurance? (Hint: utility theory) [30 pts]
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