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Solve clearly 1. (20 pts) Assume that there are three prospects for motorbike insurance. The full insurance prospect gives 1 of having $81, insurance against

Solve clearly

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1. (20 pts) Assume that there are three prospects for motorbike insurance. The full insurance prospect gives 1 of having $81, insurance against an accident gives probability 0.70 of $100 and 0.30 of $36. And no insurance prospect gives the probability 0.10 of $25, 0.10 of $49 and 0.80 of $64. Write down all the prospects and calculate expected utility for three types of utility function (linear (U(x) = 2x), concave (U(x) = 30vx) and convex (U(x) = x-/10) and find expected value

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