Which would reduce your disposable income

Reference no: EM133396088

Question: Suppose your current disposable income is 10,000$. There is a 10% chance you will get in a serious car accident, incurring damage of 1,900$ which would reduce your disposable income 8,100. There is a 90% chance that nothing will happen.

Your utility function is U= root of F where F is income.

Reference no: EM133396088

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