Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
-(Table: Total Utility of Income After College Expenses) The Smith family will choose to purchase insurance:

A) at any premium.
B) at a premium for which the reduction in risk leaves the expected value of their income after tuition the same.
C) up to but not exceeding the point at which the premium is that of a fair insurance policy.
D) at a premium for which the reduction in risk is that of a fair insurance policy.