Question: Assume that Jessica's utility function is given by: U(I)=16I Where I represents annual income. She is offered a job that has a 0.3 probability of

Assume that Jessica's utility function is given by:

U(I)=16I

Where I represents annual income. She is offered a job that has a 0.3 probability of earning $21000 and a 0.7 probability of earning $57000. How much would Jessica be willing to pay to insure against the risky income?

Answer: $??

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