Suppose replacing your fridge costs $1300 and you dont know how high the chances are that you have to replace it. Somebody offers you full insurance (no deductible or maximum coverage) for a premium of $161.

Perform a sensitivity analysis to determine how high the chances of having to replace the fridge would have to be to make buying the insurance the maximizing option (in other words: how high would the chance of having to replace the fridge have to be to make the expected value of the insurance higher than the expected value of not buying insurance)?