Imagine you are considering a 1-year warranty that will cover 100% of repair costs for your car. Suppose your annual income is $50,000 and that a major repair to your car costs $8,000. Assume there is a 20% chance that you will need such a repair this year, and that your utility of income can be described by the utility function: . a. How much is the expected value of the warranty? b. How much is the most you should be willing to pay for the warranty