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Phil has an income of $60,000 and faces a 5% probability of incurring a health loss that would cost Phil $36,000 in medical expenses. Phil

Phil has an income of $60,000 and faces a 5% probability of incurring a health loss that would cost Phil $36,000 in medical expenses. Phil is offered a guaranteed income of $52,000 by his employer, with all medical expenses paid if he gets sick. Phil's expected income is

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