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1. Suppose that Elizabeth has $10,000 in wealth. While she is a reasonably healthy college student, she still is susceptible to contacting mononucleosis ("mono" or "the kissing disease"). In fact, Elizabeth faces a 25% chance of catching the disease this year. If so, she would have to pay $7500 in medical expenses. Elizabeth's utility function over wealth is: U = 10W0.5 where W is her wealth. a. What is Elizabeth's expected wealth? (3 points) b. What is Elizabeth's expected utility? (3 points) c. Would Elizabeth buy a full indemnity insurance policy if the premium is $3400? Why? (6 points)