There is a 29% chance that your car will need a major repair this year at a cost of $5670. You can buy an insurance policy for a price of $X that will cover the full cost of the repair. Your annual income is y=$50,000 and your utility of income can be described by the utility function: U(Y) = VY The table below describes your net income in each scenario: Car Breaks Down (P1=29%) Car Doesn't Break Down (P2=71%) Insurance $55000-X $55000-X No Insurance $49330 $55000