Suppose that a decision maker's risk attitude toward monetary gains or losses x given by the utility function .

If there is a 2% chance that one of the decision maker's family heirlooms, valued at $6,000 will be stolen during the next year, what is the most that she would be willing to pay each year for an insurance policy that completely covers the potential loss of her cherished items? (Hint: Recall, for example, that if , then . )

		12.6712
		123.75
		127.67
		132.32