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Claudia
What is the risk premium for this set of probabilities and utilities?
12. You are an insurance provider. Your business practice is to charge the most you possibly can from a given individual (in other words, you will charge a yearly premium equal to an individual’s risk premium). Assume individuals are all the same, and have a vNM utility over money of u(x)=ln(x), where x is an individual’s wealth. In addition, assume that with a 90% probability an individual will not face a major medical event in a given year and will keep all their wealth. With a 10% probability an individual will face a major medical event and will end up with a $10000 bill (in other words, their total wealth will be reduced by $10000). How much more will an individual with $50,000 initial wealth have to pay for their premium than an individual with $1,000,000 initial wealth?
2 AnswersInsurance10 years agoGiven an linear budget line, will a non-convex indifference curve have an interior solution that will max util?
Assume preferences are complete, transitive, monotonic, but NOT convex. In other words, assume that indifference curves are downward sloping and increase as we move away from the origin, but are bowed out instead of bowed in. Given a linear budget line, will an interior solution maximize utility?
2 AnswersHomework Help10 years agoWhich JD/MBA Program is the best, UNC's of UF's?
UNC being University of North Carolina at Chapel Hill and UF being the University of Florida. Which JD/'MBA program is the most prestigious and the least time consuming?
4 AnswersHigher Education (University +)1 decade agoWhere should I go to college, University of North Carolina (UNC) or University of Florida (UF)??????
I live in North Carolina, so I'd have to pay out of state for UF. Money isn't too much of an issue.
3 AnswersHigher Education (University +)1 decade agoWhat are some reasons my parents should let me get a house at the beach with my girl friends for Spring Break?
We will be unsupervised but it will be all girls.
14 AnswersAdolescent1 decade agoWhat are some reasons my parents should let me go to Wilmington for New Years Eve?
I'm 18 year old girl and I will be staying at my friend's apartment. She lives with 2 other girls. Please help me think of some ideas to convince my parents.
9 AnswersOther - Holidays1 decade agoThe bicoid gene product is normally localized to the anterior end of the embryo. If large amounts of the ?
product were injected into the posterior end as well, which of the following would occur?
a. anterior structures would form in both sides of the embryo
b. the embryo would probably show no anterior development and die
c. the embryo would grow to an unusually large size
d. the embryo would develop normally
e. the embryo would grow extra wings and legs
1 AnswerBiology1 decade ago