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Question 3 4 pts Victoria has $6000 to put toward consumption this month. She believes there is a 20% chance she will have a bike
Question 3 4 pts Victoria has $6000 to put toward consumption this month. She believes there is a 20% chance she will have a bike accident this month. in which case she will incur medical costs of $4000 [leaving her with $2000 to put toward consumption}. "v'ictoria's utility over consumption is given by U = 0.75 where c is consumption [in dollars}. In the absence of any insurance, the expeoted value of llullictoria's consumption this month is $ 5200 l . In the absence of any insurance, the expected utility lll'ictcria receives from her consumption this month isl 5'5? utils [enter only numbers in the blanks. and please round to the nearest whole number if necessary}. Question 6 4 pts Consider Victoria from the previous questions. Suppose that Victoria also has the option of purchasing $1000 worth of insurance coverage for a bike accident at an actuarially fair price. The expected value of Victoria's consumption should she purchase this partial insurance coverage is $ Victoria's expected utility should she purchase this partial insurance coverage is utils (enter only numbers in the blanks, and please round to the nearest whole number if necessary)
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