QUESTION 17 Suppose an individual makes $75,000 of income per year. Her utility function is given by u = 1OXO'5, where x is her income minus expenses. She realizes that there is about a 2.5% probability that she may suffer a heart attack in any given year. The cost of treatment will be $40,000 if a heart attack occurs. She has the option of buying health insurance for $3,000 per year, which will cover all expenses in case of a heart attack. Should she buy this health insurance? (Note: X 0'5 is a different way of writing the square root of x) O a. Yes, she is risk averse and wants to avoid losses at all costs. 0 b. No, she should not buy insurance as her expected income is higher without insurance. 0 c. Yes, her expected utility with insurance is 2698.16, which is higher than her expected utility without insurance. 0 d. No, her expected utility without insurance is 2716.92, which is higher than her expected utility with insurance