Show your work when calculations are involved (I cannot give partial credit if you do not show me what you are doing). Note that long answers are not superior to short precise answers. I am fine with bullet points. Good luck! 1. Suppose utility is given by U=w, where w is wealth. Further suppose the individual has $600,000 (i.e., wealth) but will have an accident that will cost them $200,000 dollars. The probability of getting into this accident is 20%. a. (3 points) In the absence of insurance, what is the individual's expected utility? b. (3 points) Suppose that the individual can purchase "full" insurance at an "actuarially fair premium." What is the actuarially fair premium for full insurance? c. (3 points) Would purchasing the insurance policy described in part (b) increase utility? Show a calculation to support your answer. d. (3 points) If the premium were changed to $41,000, should the individual still purchase the coverage? Show a calculation to support your