22 What is this individual's expected utility if he does not purchase insurance 23 If the insurance company charges a fair premium equal to this individual's expected loss, the individual will be (better off worse off) buying insurance 24 The most this individual would be willing to pay for insura...

Ans 22 If he does not buy insurance He is left with 20000 with 08 probability which means he gets 14 ...

22. What is this individual's expected utility if he does not purchase insurance? 23. If the...

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Question:

Use the following information to answer the next FOUR questions: Consider the following figure which shows utility defined ov Total Utility 141.42 U=f(w) 137.63 137.41 122.47 Wealth 15,000 18,881.51 18,942.02 19,000 20,000 22. What is this individuals expected utility if he does not purchase insurance? 23. If the insurance company charges a fair