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A decision maker has a utility function defined on wealth which is given by u(w) = w//2. Initial wealth is w = 8100. The decision

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A decision maker has a utility function defined on wealth which is given by u(w) = w//2. Initial wealth is w = 8100. The decision maker faces an accident loss of 4500 with probability . 1. a. What is the decision maker's expected wealth in the gamble with nature? b. What is the decision maker's expected utility in the gamble with nature? c. What is the maximum premium that the decision maker is willing to pay for full insurance coverage? d. What is a fair premium for full insurance coverage? e. What is the decision maker's expected loss from the gamble with nature

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