Jenny has income of 12 that if she gets sick next period will be reduced to only 2. Jenny knows that the probability she will be sick next period is .4 (four-tenths). She values her income, Y, according to the formula Utility = 12Y-ey2 show all work to answer the following problems: a. What is the expected value of Jody's income? b. What is the expected utility that Jody receives from her income? c. Is Jody risk averse? Explain carefully Jenny now imagines purchasing an insurance policy. The premium that she must pay is 6 regardless of whether she is healthy or sick. She receives nothing from the policy when healthy but receives 10 when sick (out of which she must pay the premium). d. Is this a full insurance policy? Why or why not? e. Is this a fair insurance policy? Why or why not? f Will Jenny prefer this policy to having no insurance? Show work? Will Jenny change her preference if the premium is 4 but the payment when sick is 9? Show work? g. h. Is this new policy full? i. Is this new policy fair