Question
You are sending a package worth 20,000. You estimate that there is a 0.1% chance that the package will be lost or destroyed in transit.
You are sending a package worth 20,000. You estimate that there is a 0.1% chance that the package will be lost or destroyed in transit. An insurance company offers you insurance against this eventuality for a premium of 15. If you are risk-neutral, should you buy insurance? Explain
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Systems analysis and design in a changing world
Authors: John W. Satzinger, Robert B. Jackson, Stephen D. Burd
5th edition
9780324593778, 1423902289, 9781305117204, 324593775, 978-1423902287
