Question
This method of strand preparation creates an intentional slip along a length of the beam to prevent the force for being applied to the beam.
a) Draped strands
b) Debonding
Mercan just bought a luxury car for $250000. All of his wealth is that car (Hint: W=250000). Mercan estimates that the probability of a car robbery in the coming year is 10 percent, and that in the event of such a robbery, the property would be worth of zero. Mercan is risk averse, her utility function is represented as U(x) = x1/2. Suppose that there is a risk neutral insurance company which would pay $250000 in the case of robbery. What is the highest Premium that Mercan accepts to pay for a full coverage insurance?
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