QUESTION 8 150 100 50 20 B0 110 200 Weel dollond The above fgure shaws how an ndvidual evaluates a bet in shch he or she has a 0 5 probansty of teceivng 20 and a 05probbity of caving 200 The indiwduat would be naerent between s00 wth certainty or the expacted value of the tie $200 with certanty or tre expected value of the bet $110 th cartainty or the sopected value of the bet D$20 th certainty or the epected value at the bet QUESTION 9 Cick Save and Submit to sare ad st Click S Al Aers to sase all asr Question Complehion Stails QUESTION 9 Utility of wealth 3100 80 60 40 20 30 12 18 Wealth thousands of dollars) Ashton has the utility of wealth curve shown in the above figure. He owns a sports car worth $30,000, and that is his only wealth. Ashton is a careless driver and there is a 30 percent chance that he will have an accident within a year. If he does have an accident, his car is worthless. Ashton would have the same expected utility as he currently has if his wealth was and he faced no uncertainty S9,000 O $12,000 O $30,000 O $21,000 QUESTION 10 Utility of wealth 24 QUESTION 10 Utility of wealth 3100 80 60 20 12 18 24 30 Wealth thousands of dollars) Ashton has the utility of wealth curve shown in the above figure. Ashton owns a sports car worth $30,000, and that is his only wealth. Ashton is a careless driver and there is a 30 percent chance that he will have an accident within a year. If he does have an accident, his car is worthless. Suppose all sports cars oners are like Ashton. An insurance company agrees to pay each person who has an accident the full value of their car. The company's operating expenses are $1,000. What is the minimum insurance premium that the company is willing to accept? e $10,000 per year o $15.000 per year $3,000 per year $6,000 per year QUESTION 11 Click Save and Submit to save and submit, Click Save All Answers to save all answers Tolal utility (units) 40 Question Completion Status: QUESTION 12 Utility of wealth S100 80 60 40 20 6 12 18 24 30 Wealth (thousands of dollars) Andrew has the utility of wealth curve shown in the above figure. He owns an SUV worth $30,000, and that is his only wealth. There is a 10 percent chance that he will have an accident within a year. If he does have an accident, his SUV is worthless. Andrew would have the same expected utility as he currently has if hiss wealth was uncertainty $18,000 O $30,000 $27,000 $21,000 and he faced no QUESTION 13 Tolal utility (unit $21,000 QUESTION 13 10 11 12 13 14 15 16 17 18 19 20 21 Wealth thousands of dollars) John's utility of wealth curve is shown in the above figure. He currently has total wealth of $20,000. If there is a 50 percent chance that his $10,000 car will be stolen, then his expected wealth equals $10,000. S15,000. $20,000. SO Click Save and Submit to save and submit, Click Save All Answers to sae all answers. Souo AlLAncw Total utility jun its)