Nsurance – Suppose that your wealth is $10,000. Out of $10,000, $1000 is the value of your house. The probability that your house will be on fire is 10%, and you lost all the value of your house if it catches fire. a. Define the gamble b. Calculate the expected value of the gamble c. Now, suppose your utility function is = W1/2 . Calculate the Certainty Equivalent and the maximum willingness to pay for the insurance premium. d. Without calculating all the math again, what happens to the maximum willingness to pay for insurance premium if the probability of your house will be burned increase to 20%?

step-by-step explanation :

we know that

the measurement of the outer angle is the semi-difference of the arcs which comprises

in this problem

m< xzy is the outer angle

substitute the values

the measure of angle xoy is equal to

> by central angle

substitute the value

in 1995, potato plants were taken into space aboard the space shuttle columbia.

step-by-step explanation:

the 8 in 8,420 is in the thousands place so it's value is 8 thousand.

the 8 in 6,870 is in the hundreds place so it's value is 8 hundred.

divide 8000 by 800 to find the answer:

8000 / 800 = 10

the 8 in 8,420 is 10 times greater than the 8 in 6,870