Solve clearly

Question 13 (5 points) Imagine a person with a utility m) as a function of wealth (W) described by: U = 5W1/5. The person's initial wealth is $4500. There is a 30% chance of a $3500 loss and a 70% chance of no loss. Suppose the insurance premium rate is 35%. (a) Calculate this person's reservation price for insurance. (b) Calculate the optimal level of insurance, the expected utility with this optimal level of insurance, and the associated expected profit of the insurance company. (c) All else constant, how would the optimal level of insurance be different for a person with a higher initial wealth