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Answer to Question #48587 in Math for Prashant

Question #48587
You are a property insurer and your client,Patricia, whose current wealth is 1.4million dollars wants to insure her 730000$ house. the chances of the house burning down is 1.5 in a thousand, renata's utility function is u(w)=sqrt(w).

will she buy insurance policy if you offer it to her for 1164$???

any help would be appreciated
1
Expert's answer
2014-11-06T08:28:07-0500
The answer to the question is available in the PDF file https://assignmentexpert.com/https://assignmentexpert.com/homework-answers/mathematics-answer-48587.pdf

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