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Insurance - Suppose that your wealth is $10,000. Out of $10,000, $1000 is the value of your house. The probability that your house will be

Insurance - Suppose that your wealth is $10,000. Out of $10,000, $1000 is the value of your house. The probability that your house will be on fire is 10%, and you lost all the value of your house if it catches fire.

a. Define the gamble

b. Calculate the expected value of the gamble

c. Now, suppose your utility function is

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