Bob has an initial wealth of $1200 but faces a 50% chance of losing $800 to doctors' bills in the coming year.Insurance is available at a rate of 60¢ per $1 of coverage.This means that if Bob purchases $X in coverage,it costs 6X¢ and pays $X towards Bob's doctors' bills.If Bob's utility function is U(w)= 2 
,how much insurance (X)will Bob purchase?
Definitions:
Fixation
In psychology, a persistent focus of the id’s libido on an earlier stage of development, preventing progress through Freud's psychosexual stages.
Psychosexual Stage
a concept in Freudian psychology that describes a series of stages of childhood development in which psychic energy is focused in different erogenous zones.
Oral
Pertaining to the mouth, including aspects related to speech, eating, and the initial stages of digestion.
Anxiety
An emotion characterized by feelings of tension, worried thoughts, and physical changes like increased blood pressure, stemming from anticipation of a future concern or threat.
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