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Suppose Tahani earns $200,000 if she is healthy, and ____ if she falls ill. Suppose further that she has a __% chance of falling ill.
Suppose Tahani earns $200,000 if she is healthy, and ____ if she falls ill. Suppose further that she has a __% chance of falling ill. If Tahani were to purchase full insurance, the payout would be equal to $80,000. The actuarially fair premium for this payout would be equal to $1600. $80,000; 2% $80,000; 1.5% . O $120,000; 1.5% $120,000; 2%
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