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Business, 30.11.2019 03:31 lilobekker5219

Bikul has just started a great job and plans to buy a fancy car worth $100,000. bikul is risk-averse in money matters, but he likes to drive fast, so the probability that he wrecks the car (a total loss of $100,000) is 0.10. the probability that he has no accidents is 0.90. if an insurance company offers bikul a fair insurance policy, the premium will be:

select one:

a. $90,000.

b. it is impossible to calculate a premium unless we know bikul's utility function.

c. $80,000.

d. $10,000.

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Answers: 1

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Bikul has just started a great job and plans to buy a fancy car worth $100,000. bikul is risk-averse...
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