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Andrew's current wealth is $100,000. He faces a 25% chance of losing his automobile worth $20,000. Suppose also that Andrew's utility function is ln x
Andrew's current wealth is $100,000. He faces a 25% chance of losing his automobile worth $20,000. Suppose also that Andrew's utility function is ln x lnx. What is the maximum amount Andrew will be willing to pay for the full insurance? Round your answer to the whole number (Example: 12345)
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