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Your Current Disposable Income Is $10,000

Question 13

Multiple Choice

Your current disposable income is $10,000.There is a 10% chance you will get in a serious car accident,incurring damage of $1,900.(There is a 90% chance that nothing will happen.) Your utility function is Your current disposable income is $10,000.There is a 10% chance you will get in a serious car accident,incurring damage of $1,900.(There is a 90% chance that nothing will happen.) Your utility function is ,where I is income.What is the fair price of this policy? A) $100 B) $190 C) $199 D) $270 ,where I is income.What is the fair price of this policy?


A) $100
B) $190
C) $199
D) $270

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