Rosa has a 10% chance of getting sick in the next year. If she gets sick, her medical bills will amount to $500. She has a wealth of $1,000. Suppose she has the utility function u(x) = x0.5, where x is her net wealth at the end of the year.

(a) Calculate Rosa’s risk premium.

(b) What is the most that Rosa is willing to pay for an insurance policy that fully covers against her loss?

(c) Some insurance policies have deductibles. A deductible is an amount of a claim not covered by insurance; it’s a fixed portion of the medical bills that the insured person must pay in order to make a claim to their insurer. Suppose Rosa’s insurance company provides two plans. Plan A has zero deductibles (good!) but charges a high premium (bad!). Specifically, Plan A charges $55 for $500 of coverage. Plan B has a deductible of $K, where K<500, but charges a premium of just $(55 – .1K). Suppose K =b $300. Will Rosa purchase insurance and, if so, which plan? Show this mathematically.

David and darlene jasper have one child, sam, who is 6 years old (birthdate july 1, 2011). the jaspers reside at 4639 honeysuckle lane, los angeles, ca 90248. david's social security number is 577-11-3311, darlene's is 477-98-4731, and sam's is 589-22-1142. david's birthdate is may 29, 1984 and darlene's birthday is january 31, 1986. david and darlene's earnings and withholdings for 2017 are:

Suppose that fizzo and pop hop are the only two firms that sell orange soda. the following payoff matrix shows the profit (in millions of dollars) each company will earn depending on whether or not it advertises: pop hopadvertise doesn’t advertisefizzo advertise 10, 10 18, 2doesn’t advertise 2, 18 11, 11for example, the upper right cell shows that if fizzo advertises and pop hop doesn't advertise, fizzo will make a profit of $18 million, and pop hop will make a profit of $2 million. assume this is a simultaneous game and that fizzo and pop hop are both profit-maximizing firms.if fizzo decides to advertise, it will earn a profit if pop hop advertises and a profit if pop hop does not advertise.if fizzo decides not to advertise, it will earn a profit if pop hop advertises and a profit if pop hop does not advertise.if pop hop advertises, fizzo makes a higher profit if it chooses (not to advertise, to .if pop hop doesn't advertise, fizzo makes a higher profit if it chooses (not to advertise, to . suppose that both firms start off not advertising. if the firms act independently, what strategies will they end up choosing? fizzo will choose to advertise and pop hop will choose not to advertise.both firms will choose to advertise.fizzo will choose not to advertise and pop hop will choose to advertise.both firms will choose not to advertise.again, suppose that both firms start off not advertising. if the firms decide to collude, what strategies will they end up choosing? fizzo will choose not to advertise and pop hop will choose to advertise.both firms will choose not to advertise.fizzo will choose to advertise and pop hop will choose not to advertise.both firms will choose to advertise.

Tubby toys estimates that its new line of rubber ducks will generate sales of $7.60 million, operating costs of $4.60 million, and a depreciation expense of $1.60 million. if the tax rate is 35%, what is the firm’s operating cash flow? (enter your answer in millions rounded to 2 decimal places.)