Solution-What is a good driver expected utility without

What is a good driver expected utility without insurance

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Good drivers have a 10% chance, and bad drivers have a 30% chance, of getting into an accident. An average car is worth $20,000, and an accident would reduce its value by half. Both types of drivers have utility U =(car- value)'s. What is a good driver's expected utility without insurance?

Reference no: EM133056262

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What is a good driver expected utility without insurance

Reference no: EM133056262

Reference no: EM133056262

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