calculation

Your phone is worth 500. The risk of damaging it or losing is 10%. If damaged or lost, your phone is worth 0. There is a competitive market of insurance companies willing to insure your phone at premium 1! per insured sum x. Your utility function is u(w) = w"-2 a. What's the premium 1r? [7%] b. Suppose 11:0.10. What's your optimal x*? [8%] c. Suppose premium was 1! =0.15. What's the optimal x*? [7%] d. How would the optimal x* change if your phone were worth 300 and 1: =0.15? [8%] Suppose you also own a laptop worth 1000. Ifyou damage the screen, its value drops of 500. This would happen again with probability 10%. e. Insurance companies in the market offer insurance against such risk for a premium 1: =0.15. What's the optimal x*? [6%] f. Suppose that if the screen is damaged, the value would instead drop to 0. All things being equal, what's x* now? [6%] g. Briefly explain in your own words the limitations of the Expected Utility Theory models. [8%]