Multiple Choice
Continuing with the same family from the preceding question,suppose a risk neutral insurance company exists to provide vacation insurance.Suppose further that each vacation day requires a constant expenditure,and this expenditure is standard across everybody. This allows us to simplify the problem by considering all payments to be in terms of vacation days. What is the least the insurance company would charge (in terms of vacation days) ?
A) 1
B) 2
C) 3
D) 4
Correct Answer:

Verified
Correct Answer:
Verified
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