4.4 Now suppose that before accepting the insurance policy, the person can decide whether to spend the 1900 to reduce the probability of a loss. The insurance company cannot observe whether the loss-prevention has been undertaken or not. (The insurance company may not be able to tell whether the person has really stopped smoking, for example.) Suppose that whatever the person does, the insurance company believes the risk has been reduced, and hence offers the contract described in 4.3. Will the person reduce the risk in this case?I Answer this by calculating the person's expected utility, given that she does pay the cost to reduce the risk and then assuming that she does not, in each case having available the insurance contract from 4.3. If the person does not reduce the risk, will the company be willing to offer this policy