Business, 25.06.2019 23:30 wiredq2049

Jill possesses $180 comma 000 worth of valuables. she faces a 0.02 probability of a burglary, where she would lose jewelry worth $80 comma 000. she can buy an insurance policy for $15 comma 000 that would fully reimburse the $80 comma 000. her utility function is u(x)equals2upper x superscript 0.5. what is the actuarially fair price for the insurance policy? if the insurance is fair, then the cost of the insurance policy is $ nothing. (enter your response rounded to two decimal places.) should jill buy this insurance policy, given the price that she's been charged to buy it? jill ▼ should not should buy this policy. what is the most that jill is willing to pay for an insurance policy that fully covers her against loss? the most jill would pay for such a policy (p) is $ nothing. (enter your response rounded to two decimal places.)

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Jill possesses $180 comma 000 worth of valuables. she faces a 0.02 probability of a burglary, where...

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