Shane just bought a house worth $360,000 in an area that is known for floods. A flood occurs with a 5% chance and if it occurs, his home is reduced in value to $202,500. Shane has utility function given by U(X)=√X. He would be willing to pay a maximum of ___________ for flood insurance. The fair insurance premium for flood insurance is ___________ Shane's risk premium is ___________ Suppose, instead, that Shane's utility function is given by  U(X)=X2 . Then, the maximum he would be willing to pay for flood insurance is

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Q: utility function

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