Jessica's utility of income is represented by: U(T) = V(187) where I represents annual income. She is offered a job that
Posted: Tue Nov 16, 2021 8:19 am
Jessica's utility of income is represented by: U(T) = V(187) where I represents annual income. She is offered a job that has a 0.4 chance of earning 534830 and a 0.6 chance of earning $65500 a year. How much would Jessica be willing to pay to insure against the risky income? Answer: $ (DO NOT ROUND YOUR CALCULATIONS UNTIL YOU REACH THE FINAL ANSWER. ENTER YOUR RESPONSE ROUNDED TO TWO DECIMAL PLACES, AND NO SEPARATOR FOR THOUSANDS.)