#title.health insurance., Financial Econometrics

Assignment Help:
Ask Sita expects her future earnings to be worth Rs. 100. If she falls ill, her expected future earning will be Rs. 25. There is a belief that she may fall ill with probability of + , while the probability of remaining in good health is - ,. Let her utility function be given as U( y) = ./ *. suppose that an insurance company offers to fully insure Sita against loss of earnings caused by illness against
an actuarially fair premium.
(a) Will Sita accept the insurance? Explain.
(b) What is the maximum amount that Sita would pay for the insurance?
question #Minimum 100 words accepted#

Related Discussions:- #title.health insurance.

Inventory days, (Average inventory/Cost of sales) * 365 days Average inv...

(Average inventory/Cost of sales) * 365 days Average inventory can be arrived by taking this year's and last year's inventory values and dividing by 2 - (Opening inventories

Bond rate differential, analysis of bond rate parity among india and usa of...

analysis of bond rate parity among india and usa of last 10-15 years

Foreign direct investment project, The new investment has been under consid...

The new investment has been under consideration since the beginning of January 2008 when the new government of Gujistan first invited companies to submit their proposals to build a

Types of working capital policy, Within a business, funds are required...

Within a business, funds are required to finance both non-current and current assets. The level of current assets fluctuates, though there tends to be an underlying lev

#title.health insurance., Ask Sita expects her future earnings to be worth...

Ask Sita expects her future earnings to be worth Rs. 100. If she falls ill, her expected future earning will be Rs. 25. There is a belief that she may fall ill with probability of

Cash flow forecast, Introduction - Overview of the business idea. A clear o...

Introduction - Overview of the business idea. A clear outline of what you intend to present and why you are presenting it in your chosen method or style Business Plan A clear

Chapter , a debit is used to record

a debit is used to record

Theories of interest rate determination, Question 1: (a) Describe clear...

Question 1: (a) Describe clearly the main theories of interest rate determination. (b) Critically assess the relationship between interest rate and Money supply. Questio

Current ratio for a company, If current ratio for a company is equal to its...

If current ratio for a company is equal to its acid test (that is, quick ratio), then: A: The current ratio must be less than one. B: Working capital is negative. C: Trade

Draw budget line, Mary has a weekly allowance of $24 to spend on soda and c...

Mary has a weekly allowance of $24 to spend on soda and coffee.  Let 40 cups be the maximum amount of soda she can buy for the money.  Let $.40 be the price of 1 cup of coffee.  As

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd