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Jean is a therapist and typically sees ve patients per day She charges each patient $120. So, she earns $600 a day. However, there is
Jean is a therapist and typically sees ve patients per day She charges each patient $120. So, she earns $600 a day. However, there is a 20% chance that she might fall sick and then she would have to cancel all her appointments. On such a day her income would be zero. The following represents her utility from income: U(I) = |n(I). She is considering purchasing a full and fair insurance contract. What should be the insurance premium, r and the payout, q under such a contract? r=$ andq=$
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