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Expert Q&A

Done

1. Suppose that John purchases an insurance plan that charges a premium of $1,400 and has a payout of $2,000. calculate John's income when healthy under this insurance plan.
2. Suppose that John purchases an insurance plan that charges a premium of $1,400 and has a payout of $2,000. Calculate John's income when six under this insurance plan.
3. Does this plan Proivde full or partial coverage to John?
4. Calculate John's expected utility of income if insured by this plan. Enter your answer rounded to one decimal point.
5. Is John's utility of income higher when insured by this plan or when uninsured?
6. Will John purchase this plan?