You sign up for a study abroad program with EF Tours for $4,000, which is nonrefundable. You think there is a 5% chance that something will happen that prevents you from going, but EF Tours offers trip insurance. The benefit of the insurance for you that it: Question 2 options: reduces your risk. increases your utility above the utility you get from wealth of $4,000. reduces the probability that a bad event happens that prevents you from going. lowers the cost of the program