of income is represented by: U(I) = V(191) e I represents annual income. She is offered a job that has a 0.2 chance of ng $26710 and a 0.8 chance of earning $63080 a year. How much would Jessica ling to pay to insure against the risky income? er: $ OT ROUND YOUR CALCULATIONS UNTIL YOU REACH THE FINAL ER. ENTER YOUR RESPONSE ROUNDED TO TWO DECIMAL PLACES, O SEPARATOR FOR THOUSANDS.)
of income is represented by: U(I) = V(191) e I represents annual income. She is offered a job that has a 0.2 chance of ng $26710 and a 0.8 chance of earning $63080 a year. How much would Jessica ling to pay to insure against the risky income? er: $ OT ROUND YOUR CALCULATIONS UNTIL YOU REACH THE FINAL ER. ENTER YOUR RESPONSE ROUNDED TO TWO DECIMAL PLACES, O SEPARATOR FOR THOUSANDS.)
Chapter17: Capital And Time
Section: Chapter Questions
Problem 17.6P
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q29
![Jessica's utility of income is represented by:
U(I) = V(191)
%3D
where I represents annual income. She is offered a job that has a 0.2 chance of
earning $26710 and a 0.8 chance of earning $63080 a year. How much would Jessica
be willing to pay to insure against the risky income?
Answer: $
(DO NOT ROUND YOUR CALCULATIONS UNTIL YOU REACH THE FINAL
ANSWER. ENTER YOUR RESPONSE ROUNDED TO TWO DECIMAL PLACES,
AND NO SEPARATOR FOR THOUSANDS.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1063fdab-11d8-4090-aa12-80eded4fda00%2Ffc8ca714-e971-4b43-8ee3-6654ef9289ef%2Fs8ot8x_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Jessica's utility of income is represented by:
U(I) = V(191)
%3D
where I represents annual income. She is offered a job that has a 0.2 chance of
earning $26710 and a 0.8 chance of earning $63080 a year. How much would Jessica
be willing to pay to insure against the risky income?
Answer: $
(DO NOT ROUND YOUR CALCULATIONS UNTIL YOU REACH THE FINAL
ANSWER. ENTER YOUR RESPONSE ROUNDED TO TWO DECIMAL PLACES,
AND NO SEPARATOR FOR THOUSANDS.)
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