Question 12 Not yet answered Marked out of 2.00 P Flag question Use the figure shown to answer the questions below Utili
Posted: Sun Apr 10, 2022 8:37 am
Question 12 Not yet answered Marked out of 2.00 P Flag question Use the figure shown to answer the questions below Utility U U2 Uz U U. 24 32 45 72 Income Currently the consumer has $72. If there is an accident their income will be $24. The probability of an accident is 0.5625. This means the consumer has an expected income of $ Suppose an insurance firm offered the consumer a fair insurance contract, that pays them $48 if an accident occurred. This contract would cost the consumer $ and their utility would be instead of The most an insurance firm could charge for this insurance contract is $