Using conventional theory (i.e., standard gamble: = iLi, where Li = value of outcome i and i = probability of outcome i), you are charged with the task of designing an actuarially fair insurance plan for companies with different exposures to COVID-19 (a.k.a. Coronavirus). There are no right or wrong numbers in terms of the expected losses, probabilities, and associated utilities, however, you must use common sense and economic theory to best estimate the risks and support your analysis with reasoning. You should carefully reflect on the characteristics of your company when estimating the expected loss function and decide how to appropriately weigh the different possible outcomes you decide to include in the function (e.g., probability of contracting the virus, cost of testing for the virus, cost of hospitalization, cost of vaccine, when we get a vaccine - how long?, etc.). Feel free use Google to find probabilities of infection rates, estimated hospitalization costs, etc.. They do not have to be exact. You may also take an "educated guess" and provide some reasoning behind your estimates.

COMPANY CHOICE: Large university with enrollment of 21,000 students and 5,800 staff and faculty