5) A person with a current wealth of $100,000 who faces the prospect of 25 percent chance of losing his or her $20,000 automobile through theft during the next year Suppose this person's utility function is U(Y) = InY. a). If this person takes no action, what is the expected utility? b). What is the actuarially fair premium? What is his expected utility if he purchase this insurance. c). Suppose that now the insurance company provides a new type of insurance. This insurance costs $4900 and requires the individual to incur the first $1000 of the loss from theft would yield. That is expected utility of this new insurance? Will the person choose the insurance in b) or c)?

Q: Ted's car is now worth $9000, which is 60% of what he paid for it. What did he pay for his car?

A: Present worth is present value or value for now which is calculated after wear and tear,depreciation…

Q: Carson used $800 000 of their savings to open a coffee shop. The savings account paid 2% interest.…

A: We know that the economic profit is the difference between the total sales revenue of output and the…

Q: Where did the $98 come from?

A: Deadweight loss can be described as the loss of total welfare or the social surplus because of…

Q: Explain the main structure of a proposal and discuss what kinds of content should be included. What…

A: A proposal is a written document that outlines a plan or an idea and seeks approval, funding, or…

Q: How did you get the values 93 million and 51 million?

A: When a monopolist charges various prices to customers while still providing them the same product,…

Q: What about part B and C? Thank you

A: In this case, we have to discuss the term complementary good. Complementary goods are those goods…

Q: Please solve Part G and Part H. Thank you so much!

A: There are two firms in duopolistic market with product differentiation .Demand function for firm i :…

Q: What is the role of technological change in asset improvement?

A: In virtually every sector, new technology is transforming the face of business-from banking to food…

Q: If your receive $500 in simple interest on a loan that you made for $10,000 for 5 years, what was…

A: here we calculate the interest rate charged which are as follow-

Q: ICD-10 was implemented in October 2015. Summarize how the industry handled it.

A: The first international classification list called as international list of causes of death was…

Q: Thanks you, U explained very well

A: Thank you for the feed back.

Q: Please help with part D

A: A Pareto efficient allocation is one in which one party can be made better off only at the cost of…

Q: What are speed payments? Could they potentially be ethical? Does it matter where speed money…

A: Speed payments, also known as 'facilitation payments' or 'grease payments', are small bribes paid to…

Q: what is the title of coloum f and what does it mean?

A: Future worth is the value of an asset at a particular date. It computes the nominal future sum of…

Q: Spreadsheet A bank's mortgage department must process the following six jobs to maximize client…

A: The jobs that are processed to maximize client satisfaction are provided below.  MortgageProcessing…

Q: how  you know what c value to look a

A: A strategy is said to be dominating when choosing it provides better payoffs independent of the…

Q: You need a car. You decide to purchase a new car for $12,000 and sell it in one year. If you don't…

A: Opportunity cost is the cost of producing one good in terms of other.  Opportunity cost shows the…