Bob's farm harvests corns worth 91 thousand dollars (and nothing else). In each year, there is a 33% chance that a storm will attack and leaves him with only 27 thousand dollars worth of the corns. Bob's preferences over wealth are represented by . What is the maximum that Bob is willing to pay for full insurance (in unit of thousand dollars)

$1.493 thousand

Explanation:

Bob's utility function U = ln (w)

the highest price Bob is willing to pay for insurance = point where Bob is indifferent between purchasing insurance or not

expected utility with insurance = expected utility without insurance

ln(91 - P) = 0.67 ln(91) + 0.33 ln(27)

4.5109 - lnP = 3.0223 + 1.0876

4.5109 - lnP = 4.1099

lnP = 0.401

P = e⁰°⁴⁰¹ = 2.71828⁰°⁴⁰¹ = $1.493 thousand

if kj of heat is transferred o 1200 g liquid water at 36'c, what would the new temperature of the water be? (he specific heat capacity of liquid water is 4.186 j/g''c)

a. 15'c

b.100'c

c.51'c

d.36'c