For this problem, use the fact that the expected value of an event is a probability weighted average, the sum of each possible outcome multiplied by the probability of the event occurring. You own a house worth $400,000 that is located on a river. If the river oods moderately, the house will be completely destroyed. Moderate ooding happens about once every 20 years. If you build a seawall, the river would have to ood heavily to destroy your house. and such heavy ooding happens only about once every 100 years. What would be the annual premium without a seawall for a ood insurance policy that offers full insurance? Without a seawall, the annual premium is $ . (Round your response to the nearest dollar.) What would be the annual premium with a seawall for a ood insurance policy that offers full insurance? With a seawall, the annual premium is $ . (Round your response to the nearest whole number.) For a policy that pays only 90% of the home value, what are your expected costs without a seawall? Without a seawall. the expected cost is $ . (Round your response to the nearest whole number.) For a policy that only pays 90% of the home value, what are your expected costs with a seawall? With a seawall, the expected cost is $ . (Round your response to the nearest whole number.) Do the different policies provide an incentive to be safer (i.e.. to build the seawall)? O A. Neither insurance policy is better or worse because the expected costs each year are the same under both scenarios. 0 B. The partial insurance policy is better since the premiums under this scenario are lower, 0 C. Neither insurance policy is better or worse, but only in the case of seawall building. O D. The full insurance policy is better since the expected cost each year is lower under this scenario