Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
-(Table: Natasha's Total Utility) Look at the table Natasha's Total Utility. Natasha earns $50,000 per year but faces losing $20,000 of it if she is late with her work. If there is a 25% probability that Natasha will be late with her work and her income will equal $30,000, the premium for a fair insurance policy to eliminate the uncertainty in her income would equal:

A) $4,000.
B) $5,000.
C) $7,500.
D) $9,500.