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Pat has a utility function of income U(I)=7*I U(30,000)= 7*30,000 U=7 Pat's income is $30,000, probability of illness is 20%, and will have $5,000 in medical bills if sick. 1. Find Pat's utility under an insurance contract that offers $4,000 of coverage when Pat falls sick and has a premium of $1,000. 2. What is the highest premium the insurance company could charge Pat and still have the $4,000 be a desirable payout amount