Consider the following FIRE INSURANCE PROBLEM where fire destroys a $300 (thousand) house. (2 points) (a) What do we mean when we say an agent is Risk Averse? (2 points) (b) Assume utility is U(x)=(x). What is the expected payoff and expected tuility of having no insurance? Show your work. (3 pointi) (c) Suppose the Insurance Premium was \$10, Would this risk averse agent buy insurance? Show your work and explain. (3 points) (d) Suppose the probability of a fire rose to 5%. Would the agent buy insurance now? Show your work and explain. Consider the following FIRE INSURANCE PROBLEM where fire destroys a $300 (thousand) house. (2 points) (a) What do we mean when we say an agent is Risk Averse? (2 points) (b) Assume utility is U(x)=(x). What is the expected payoff and expected tuility of having no insurance? Show your work. (3 pointi) (c) Suppose the Insurance Premium was \$10, Would this risk averse agent buy insurance? Show your work and explain. (3 points) (d) Suppose the probability of a fire rose to 5%. Would the agent buy insurance now? Show your work and explain