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Suppose your current disposable income is 10,000$. There is a 10% chance you will get in a serious car accident, incurring damage of 1,900$ which
Suppose your current disposable income is 10,000$. There is a 10% chance you will get in a serious car accident, incurring damage of 1,900$ which would reduce your disposable income 8,100. There is a 90% chance that nothing will happen.
Your utility function is U= root of F where F is income.
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