Diana has a car whose value is 40 thousand dollars. The probability of an accident is 10% and she will lose the car at occurrence of the accident. Diana has wealth of 20 thousand dollars aside from the car, and her utility over wealth is given by u (w) = w'2. Final wealth w is measured in thousands (for example, to = 60 if there is no accident and no other payment). 8. Suppose Diana might read and send messages using her cell phone while driving, which is very dangerous. If she does that, the probability of accidents will rise to 20%. However, since she enjoys the thrill of multitasking, she gets a boost of 0.0001 to her instantaneous utility. That is, the instantaneous utility with messaging is uM (w) = w_2 + 0.0001. Consider the following statements: (I) If there is no insurance available, Diana will not read and send messages while driving. (II) The insurance company can choose a premium for full insurance that is high enough to curb the bad messaging behavior, but still low enough that Diana will purchase it. (III) If the insurance company offers partial insurance at premium 10 thousand, and does not offer full insurance, then Diana will purchase the insurance and not read and send messages while driving. (a) More than one statement are correct. (b) None of the statements is correct. (c) Only statement (I) is true. ((1) Only statement (II) is true. (e) Only statement (III) is true