PLZ SIMPLY FILL IN THE BLANKS USING INFORMATION PROVIDED

Suppose Fred is a risk-averse decision maker with a utility function U=, where W denotes Fred's wealth.Fred's current wealth is $10,000.However, there is a 68 percent chance that Fred will have an accident that reduces his wealth to $2,500.

38. Fred's expected loss from an accident is $_______________.

39. If the insurance company charges Fred a premium for insurance equal to the fair premium plus an additional $540 to cover the company's loading costs, Fred will be (better or worse) __________ off if he buys the insurance.