Question: An individual faces a loss X that is uniformly distributed ( 0 , 2 0 0 ) . The individual can purchase partial insurance against

An individual faces a loss X that is uniformly distributed (0,200). The individual can purchase partial insurance against this loss, under which he would pay Y=min(X,100), so that the individual would pay the loss in its entirety if it were less than 100 and would pay 100 if contrary. The individual makes decisions using the utility function u(x)=x^(2/5). Is the individual willing to pay 80 for this partial insurance coverage if his wealth is 300?

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