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Hi, please help with this question 3. A builder is considering buying insurance in order to cover penalties for failing to meet completion dates of

Hi, please help with this question

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3. A builder is considering buying insurance in order to cover penalties for failing to meet completion dates of a house that she has under contract. The contracted penalties are $10,000 per house for not meeting the completion date. The utility mction for money, x, between -$ 10 and +310 (in thousands) for the builder is U(x) = (x+10)/(x+1 l). a) (10) What is the expected dollar cost to her of the gamble she takes by not insuring, as a function of p (the probability of meeting the schedule)? b) (15) If p = 0.8, what is the total insurance payment she should be willing to make to avoid the gamble? c) (10) If p = 0.8, what is the risk premium? d) (10) For what value of p should she be willing to pay an insurance cost of $5000? e) (10) What is the builder's risk aversion function

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