1.Say an individual is faced with the decision of whether to buy auto insurance or not like before laws in many states changed). The states of nature are that no accident occurs with probability.992) or an accident occurs (with probability 008). Here is the payoff table for the decision maker State of Nature Decision No Accident Accident -500 Purchase insurance Do not purchase Ins -500 0 - 10000 a Say the individual is a risk averter. Create a table with plausible values of utility for the risk averse person, calculate the expected utility of each decision and state which decision is best based on the expected utility idea