Suppose a decision maker has initial wealth $3,400,000 and is considering insuring an asset valued at $204,000. Assume that if damage to the asset occurs, the asset will lose 80% of its value. Also assume the damage will occur with probability p=4%. Assume their utility function is u(x)=x. (a) Compute the expected loss (b) Compute the maximum amount they would pay for the insur completely cover any loss should damage occur.)