3. Burger Prince Restaurant is considering the purchase of a $100,000 fire insurance policy. The fire statistics indicate that in a given year the probabilit of property damage in a fire is as follows: Fire $100,00 $75,000 $50,000 $25,000 $10,000 $0 Damage Probability .006 .002 .004 .003 .005 .980 a. If Burger Prince was risk neutral, how much would they be willing to pay for fire insurance? b. If Burger Prince has the utility values given below, approximately how much would they be willing to pay for fire insurance? Amount of $100,0 $75,00 $50,00 $25,00 $10,00 $5,000 $0 Loss 00 Utility 30 60 85 95 99 100

3. Burger Prince Restaurant is considering the purchase of a $100,000 fire insurance policy. The fire statistics indicate that in a given year the probabilit of property damage in a fire is as follows: Fire $100,00 $75,000 $50,000 $25,000 $10,000 $0 Damage Probability .006 .002 .004 .003 .005 .980 a. If Burger Prince was risk neutral, how much would they be willing to pay for fire insurance? b. If Burger Prince has the utility values given below, approximately how much would they be willing to pay for fire insurance? Amount of $100,0 $75,00 $50,00 $25,00 $10,00 $5,000 $0 Loss 00 Utility 30 60 85 95 99 100

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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