Sunday

February 1, 2015

February 1, 2015

Posted by **Susan** on Saturday, December 5, 2009 at 6:40am.

(A) £975.

(B) £199.

(C) £1000.

(D) £900.

(E) £1164.

(Solution is A, 975)

- Economics -
**economyst**, Saturday, December 5, 2009 at 2:37pmWithout insurance, Pete's expected utility is .9*sqrt(2*10000) + .1*sqrt(2*2500) = 134.3502884 utils So, what wealth give him equal amount of utility. Well, work the utility formula backwards. That is (134.3502884^2)/2 = 9025. Take it from here.

**Answer this Question**

**Related Questions**

algebra - the price of a car depricates over time at a rate of approximately 18...

math - you purchase an suv for $26,000. A year later the car is worth only $24,...

physics - Rank these automobiles based on the magnitude of the impulse needed to...

physics : different question - Rank the automobiles based on the magnitude of ...

math - The value of a car decreases at a constant rate as it grows older. When ...

math - Ed buys a car on credit . He makes a down payment of $1,500 and pays $250...

math - Figures obtained from a city's police department seem to indicate that of...

Statistics - According to insurance records a car with a certain protection ...

Statistics - According to insurance records a car with a certain protection ...

pre cal - you decide to buy a car for 25000. each year your car depreciates in ...