-The Above Figure Shows Bob's Utility Function

question 100

Multiple Choice

-The above figure shows Bob's utility function.He currently has $100 of wealth,but there is a 50% chance that it could all be stolen.What is the most Bob would pay for insurance that would replace his $100 should it be stolen?

• A) $30
• B) $50
• C) $70
• D) $75

---

Definitions:

Standard Error

The statistical metric that represents the dispersion within a sample's distribution, often applied to the average.

Population Proportion

The share or fraction of a population that exhibits a particular attribute or characteristic.

Population Proportion

The ratio of members in a group that have a characteristic of interest to the total number of individuals in the population.

Sample Proportion

The fraction or percentage of the sample that has a particular property or characteristic.