Question: QUESTION 3 20 points Save Answer Say we have an individual with a utility function of U= 7. This person earns $150,000 per year when

QUESTION 3 20 points Save Answer Say we have an individual with a utility function of U= 7. This person earns $150,000 per year when healthy and $100,000 per year when sick. The probability of staying healthy is 0.8 and the probability of getting sick is 0.2. What is the actuarilly fair price for health insurance? What is the maximum price that the individual is willing to pay for health insurance

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