Use the following information to answer this question: If an insurance policy that fully covers your damage is priced at $100, what is the change in your expected utility if you purchase the policy rather than no insurance?

[Hint: (1) Calculate your expected utility without the insurance; (2) If you buy the insurance, what is your certain income and, hence, your utility?]

Use the following information to answer this question: If an insurance policy that fully covers your damage is priced at $100, what is the change in your expected utility if you purchase the policy rather than no insurance? [Hintz (1) Calculate your expected utility without the insurance; (2) If you buy the insurance, what is your certain income and, hence, your utility?] Your current disposable income is $10,000. There is a 10% chance you will get in a serious car accident, incurring damage of $3600. (There is a 90% chance that nothing will happen.)Your utility function is U = 47, where I is income. J o b) 1.5 c) 2.0 d) 0.5