Question: Using the information in #7, solve #8. Show work please. 8. Assume one individual has the utility function expressed by U(W)=10W for Question 7, and

Using the information in #7, solve #8. Show work please.

8. Assume one individual has the utility function expressed by U(W)=10W for Question 7, and all other situations remain the same. What is the maximum premium of insurance she is willing to pay to fully cover the loss? 7. Assume one individual has the utility function expressed by U(W)-InW; her current wealth W. - $120, she faces a potential loss L. L can be either $20 (with the probability of 20%) and $100 (with the probability of 20%)

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