I need help with this please? Risk a) Draw (no equation necessary) a...
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I need help with this please?
Risk a) Draw (no equation necessary) a utility function based on wealth for a risk LOVING person b) Suppose a person's utility function is u=w where w is the person's wealth. Suppose initial wealth is $100 but there is a 75% chance that the person will suffer a loss of $64 and wind up with $36. What is this person's EXPECTED utility? c) In part b, suppose the person can buy insurance for $55 which guarantees no other wealth loss will occur (aside from the price of insurance). Will they buy the insurance? d) What is the maximum price that this person would be willing to pay for insurance
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