1-) (20 Points) Assume that you will earn $90,000 next year. The probability of having an accident in a year is 0.05 and your income will be $22,500 in that case. Your utility function is U(C) = (1/2 where C is consumption. a) What is your expected utility at the end of the year without insurance? b) Calculate an actuarially fair insurance premium for the full insurance. c) What would your expected utility be if you purchase a full insurance with actuarially fair premium? Will you buy this insurance, why or why not