PLEASE, NEED HELP WITH ONLY NEED QUESTION F AND G (THE TWO DIAGRAMS). THANK YOU.

1.)Jackson has a utility of money function given by.

a) Is Jackson risk averse, risk neutral, or a risk lover? How do you know this?

All of Jackson's wealth is in his land and his house; the total value is $1,000,000. With probability 0.4, the house will burn down, and Jackson's remaining wealth will be only the value of the land, which is $28,900.

b) What is the expected value of the gamble Jackson faces?

c) Write down the equation you would use to calculate the expected utility Jackson receives from this gamble, and briefly explain what expected utility is.

c) Sketch Jackson's utility of wealth function, using at least page for your diagram. On the diagram indicate the expected value (EV) and his expected utility (EU).

d) Explain what is meant by the "certainty equivalent of the gamble" in this context, and identify it on your diagram. How would you calculate the value of Jackson's certainty equivalent?

e) What is the maximum amount Jackson would be willing to pay for full insurance against the potential lost wealth? Identify this amount on your diagram, and explain why this amount is correct.

f) Using at least page for your diagram, sketch Jackson's indifference curve given the situation above. Put income in the good state (no loss) on the horizontal axis. Identify the following in your diagram:

i) the expected value of the gamble Jackson faces (EV)

ii) Jackson's certainty equivalent of the gamble

iii) the amount Jackson would be charged for actuarially fair full insurance.

g) In a separate diagram, repeat the questions in part(f) putting income in the good state on theverticalaxis.