Suppose a consumer has income I=$100. if the consumer gets sick, he must go to the doctor. The cost of a visit to the doctor is $75. The consumer's utility from income is U(1) = VI The probability of getting sick depends on whether the consumer goes to the gym. If the consumer goes to the gym, then he gets sick with probability 10%. If the consumer does not go to the gym, then he gets sick with probability 90%. The cost of going to the gym is $10. Compute the consumer's expected utility if he goes to go to the gym: E(u)= 9.6 Compute the consumer's expected utility if he chooses not to go to the gym: E(u)= 8.9 Now suppose that an insurance company offers to fully insure this consumer. The consumer pays a premium p=7.5 upfront. If the consumer gets sick, then the insurance company fully pays for the doctor. Compute the consumer's expected utility if he purchases the insurance AND goes to the gym: E(u)= Finally, compute the consumer's expected utility if he purchases the insurance AND does NOT go to the gym: E(u)=