7. Consider two lotteries: . Lottery 1: The gamble (0.1, 0.6,0.3) over the final wealth levels ($1, $2, $3). (The expected value of this lottery equals $2.2) . Lottery 2: Get $2.2 for sure. a) Any risk-averse individual will choose the first lottery. b) Any risk-averse individual will choose the second lottery. c) Any risk-averse individual will be indifferent between these two lotteries. d) None of the above10. Some insurance policies have deductibles. A deductible is an amount of a claim not covered by insurance. It's a fixed portion of the medical bills that the insured person must pay in order to make a claim to their insurer. Suppose Rosa's insurance company provides two plans. Plan A has zero deductibles (good!) but charges a high premium (bad!). Specifically, Plan A charges $591 for full coverage. Plan B has a deductible of $197, but charges a premium of just $199. Will Rosa purchase insurance and, if so, which plan? (a) Rosa will not purchase any insurance (b) Rosa will purchase plan A (c) Rosa will purchase plan B (d) Rosa is indifferent between plan A and plan B. She can purchase either of them. (e) None of the above