Themba wants to buy insurance and has utility function U = Y. He has an income (Y) of R90 000 but faces the possibility of a loss of R50 000 in income. He can purchase an insurance policy that fully compensates him for the loss. This insurance policy cost R5900. He has a probability K of experiencing the loss. i) Does the utility function describe a risk-loving or risk risk-averse or risk-neutral decision maker? Justify your choice. (2 marks) ii) Find the smallest value of K so that a decision-maker purchases insurance. (3 marks) iii) Determine what will happen to the smallest value of K if the insurance company were to raise the insurance premium from R5 900 to R27 500. (3 marks) iv) Determine what will happen to the smallest value of K if the insurance company were to lower the insurance premium from R5 900 to R3 500