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What is expected utility

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Now, instead assume an individual has income of $100,000, a 10% chance of incurring a $75,000 accident, and a 20% chance of a $10,000 accident (and a 70% chance of no accident). The utility function is represented by U = Ci. If the person purchased full insurance under this scenario with two adverse events, where the premium was $7.500. What is expected utility?

Reference no: EM133133307

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