For this problem, use the fact that the expected value of an event is a probability weighted average, the sum of each probable outcome multiplied by the probability of the event occurring. You own a house worth $200,000 that is located on a river. If the river floods moderately, the house will be completely destroyed. This happens about once every 20 years. If you build a seawall, the river would have to flood heavily to destroy your house, which only happens about once every 200 years. What would be the annual premium without a seawall for an insurance policy that offers full insurance? Without a seawall, the annual premium is $| (Round your response to the nearest whole number.) What would be the annual premium with a seawall for an insurance policy that offers full insurance? With a seawall, the annual premium is $(Round your response to the nearest whole number.) For a policy that only pays 75% of the home value, what are your expected costs without a seawall? Without a seawall, the expected cost is $ (Round your response to the nearest whole number.) For a policy that only pays 75% of the home value, what are your expected costs with a seawall? With a seawall, the expected cost is $ (Round your response to the nearest whole number.) Do the different policies provide an incentive to be safer (i.e., to build the seawall)? O A. The full insurance policy is better since the expected cost each year is lower under this scenario. OB. The partial insurance policy is better since the premiums under this scenario are lower. O C. Neither insurance policy is better or worse, but only in the case of seawall building. OD. Neither insurance policy is better or worse because the expected costs each year are the same under both scenarios