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  3. 1. solve the case of moral hazard and uncertainty.

1. Solve the case of Moral Hazard and Uncertainty. See table below: The person faces...

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1. Solve the case of Moral Hazard and Uncertainty. See table below: The person faces the following "loss distribution": 2. Make cases when insurance is or is not included. Analyze the results. 3. For both cases, change the probabilities of having an accident or not having an accident if one drives with care or not. Specifically, the probability of having an accident if one drives carefully is 30% and the probability of not having an accident if one drives with care is 70%. Inverse these percentages if one drives without care. 4. Do the initial results change, in other words, if the person having insurance has an inducement to drive without caution? 1. Solve the case of Moral Hazard and Uncertainty. See table below: The person faces the following "loss distribution": 2. Make cases when insurance is or is not included. Analyze the results. 3. For both cases, change the probabilities of having an accident or not having an accident if one drives with care or not. Specifically, the probability of having an accident if one drives carefully is 30% and the probability of not having an accident if one drives with care is 70%. Inverse these percentages if one drives without care. 4. Do the initial results change, in other words, if the person having insurance has an inducement to drive without caution

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