Find out the utility with full insurance for the treatment

Reference no: EM1333055

Actuarilly fair premium

What is the actuarilly fair premium for full coverage for a treatment. Find the utility with full insurance for the treatment and how much would the individual be willing to pay to obtain such insurance than the fair premium (calculate the risk premium)?

Utility function is given by U=10(X1/3)
CUrrent income is 64000, 10% chance of contracting the disease, cost of treatment $32000

Reference no: EM1333055

Questions Cloud

Cost of benefits is to expensive to sustain business : Choose a recent situation in which employees and the employer realized the cost of benefits is to expensive to sustain business and the company has taken drastic measures to remain viable.

Addressing the substance abuse : Develop a questionnaire or interview with a minimum of 10 questions that address substance abuse. Make sure your questions are clear, concise, and unbiased.

Explain how can a domestic market be protected : Explain how can a domestic market be protected. If a country had protected domestic market, what would be the likely effect on its balance of trade.

Emerging issues which are critical for hr : Explain What are five emerging issues you think are critical for HR and a company to address and How does HR assess these issues when they are in flux

Find out the utility with full insurance for the treatment : Find out the utility with full insurance for the treatment also how much would the individual be willing to pay to obtain such insurance than the fair premium.

Overall evaluation of the medium twitter : A summary of your experiences and your overall evaluation of the medium "Twitter".

Decision making process in business organizations : What is the decision making process or processes in business organizations?

Define the limitations of vb-script : OOP is not about programming as much as it is about thinking in a specific way. When you think of an object, you should see it as a set of properties and processes. Properties are the data, and methods are what you do to the data.

Discussing basic elements of 4th amendment search : You are part of an investigative unit that has been monitoring a drug operation. You know that in the near future, your group will need to search the house and car of the person who has been a key figure in the operation.

User Account

All Pages