FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help me on this question A person has wealth of $40,000. If they have an accident they must spend $30,000 on car repairs. Their

please help me on this question

image text in transcribed
A person has wealth of $40,000. If they have an accident they must spend $30,000 on car repairs. Their utility function is given by U =w1/2 where w is equal to their wealth. They do not get into an accident with a 95% chance and they get into an accident with a 5% chance. What is the total fair premium for full insurance for this person? A/

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Environmental Markets A Property Rights Approach

Environmental Markets A Property Rights Approach

Authors: Terry L Anderson, Gary D Libecap

1st Edition

0521279658, 9780521279659

More Books

Students also viewed these Economics questions

Question

★★★★★
How can quorum sensing be considered a regulatory mechanism for conserving cell resources?

Answered: 1 week ago

Question

★★★★★
In Problems 25-28, find the present value, using the present value formula and a calculator. Achieve \(\$ 420,000\) in 30 years at \(6 \%\) interest compounded monthly.

Answered: 1 week ago

Question

★★★★★
Describe advantages and disadvantages of Leibnizs approach to the mindbody problem?

Answered: 1 week ago

Question

★★★★★
Mahalo Boat Adventure Inc. has a July 31 year-end. It showed the following partial amortization schedules regarding two bond issues: Required Answer the following for each bond issue: a. Were the...

Answered: 1 week ago

Question

★★★★★
On November 1, 2017, Marin Inc. had the following account balances. The company uses the perpetual inventory method. Debit Credit Cash $9,180 Accumulated DepreciationEquipment $1,020 Accounts...

Answered: 1 week ago

Question

★★★★★
In Kerns comparative ratio analysis, the 2018 inventory turnover ratio for Century Chocolate is closest to: A . 5.07. B . 5.42. C . 5.55. Hans Annan, CFA, a food and beverage analyst, is reviewing...

Answered: 1 week ago

Question

★★★★★
For a consumer with demand function p = 30 4q, find consumer surplus CS at price p0 = 10, and p1 = 14 and deltaCS from the price change from p0 to p1. What is the economic implication?

Answered: 1 week ago

Question

★★★★★
You decide that you need to change the ways you interact with the sales staff. Which of the following actions would best remodel your behavior based on the persuasion principle of being what the...

Answered: 1 week ago

Question

★★★★★
Using FNMA's website takes patience and practice, which is why we asked you to poke around and familiarize yourself with its search functions. We want to hear your opinion. Please answer the...

Answered: 1 week ago

Question

★★★★★
1. Question1 Some of Carmen Reinhart's historical findings on sovereign defaults include: (check all that apply) It is common for governments to solve their debt problems by inflating their...

Answered: 1 week ago

Question

★★★★★
30- Infiltrative lesions are sometimes described as having a O A. sunburst O B. cloud-like O C. moth eaten O D. mashed potatoes appearance.

Answered: 1 week ago

Question

★★★★★
Consider the operation ProperPreOrSuffix(L) on languages over the al- phabet = {a, b, c}. ProperPreOrSuffix(L) = {x | w L, y = and w = xy or w = yx} Show that regular languages are closed under the...

Answered: 1 week ago

Question

★★★★★
11. How often have you passed on to others this type of information, which you have filled in yourself? Never, then you should think again.

Answered: 1 week ago

Question

★★★★★
9. Think of any experience that has made a very strong impression on you, and where it did not go the way you thought it would. Imagine this experience as a movie in your inner theatre. Run this...

Answered: 1 week ago

Question

★★★★★
12. Think through the last week. If you could have changed some of your behaviour, what would you have changed? How would you have changed that? What would you seek to achieve by changing your...

Answered: 1 week ago

Previous Question Next Question