Multiple Choice
Maya's bracelet is worth $100. There is a 25% chance that it will be stolen from the locker room at the gym. Maya's utility function for money is U(W) = W2. Maya is able to buy an insurance policy to cover her bracelet against theft. How much would she be willing to pay for the insurance?
A) 13.4
B) 32.8
C) 16.6
D) 24.4
Correct Answer:
Verified
Correct Answer:
Verified
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