Health, 16.02.2022 05:50 xxaurorabluexx
Blane has a 5% chance of losing $25,000 and a 95% chance of losing nothing. What is her average loss?
She has $30,000 to begin with. What is her wealth after purchasing actuarially fair insurance?
What is her Utility if she purchases insurance?
Why is this difference from your answer to the previous question?
Now come up with an analytical question.
Answers: 3
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Blane has a 5% chance of losing $25,000 and a 95% chance of losing nothing. What is her average loss...
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