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					                                               prob of job          0.9          0.8          0.7          0.6

NO        premium                       $0
INSURANCE payout if no job              $0
          outcome if job           $50,000
          outcome if no job             $0
          utility if job                300
          utility if no job             200
          expected utilities                                        290          280          270          260
          certainty equivalents                              $44,100.00   $38,400.00   $32,900.00   $27,600.00

PART (a)    premium                 $10,000
            payout if no job        $30,000
            outcome if job          $40,000
            outcome if no job       $20,000
            utility if job        282.842712
            utility if no job     244.948974
            expected utilities                               279.053339 275.263965 271.474591 267.685217
            certainty equivalents                             $37,870.77 $35,770.25 $33,698.45 $31,655.38
        0.5




       250
$22,500.00




263.895843
 $29,641.02
                                                 prob of job           0.9           0.8          0.7           0.6

NO        premium                          $0
INSURANCE payout if no job                 $0
          outcome if job              $50,000
          outcome if no job                $0
          utility if job                   300
          utility if no job                200
          expected utilities                                          290           280           270          260
          certainty equivalents                                $44,100.00    $38,400.00    $32,900.00   $27,600.00

PART (a)    premium                   $14,000
            payout if no job          $30,000
            outcome if job            $36,000
            outcome if no job         $16,000
            utility if job          275.680975
            utility if no job       236.643191
            expected utilities                                 271.777197    267.873418     263.96964   260.065862
            certainty equivalents                               $33,862.84    $31,756.17   $29,679.97    $27,634.25
        0.5




       250
$22,500.00




256.162083
 $25,619.01
                                         prob of job        0.9        0.8        0.7        0.6

NO        premium                  $0            EU    290.0000   280.0000   270.0000   260.0000
INSURANCE payout if no job         $0            CE     $44,100    $38,400    $32,900    $27,600

            premium            $25,000           EU    254.9510   254.9510   254.9510   254.9510
            payout if no job   $50,000           CE     $25,000    $25,000    $25,000    $25,000

            premium             $3,500           EU    286.2618   278.4148   270.5678   262.7207
            payout if no job   $10,000           CE     $41,946    $37,515    $33,207    $29,022

            premium               $500           EU    289.6205   280.0755   270.5305   260.9855
            payout if no job    $2,000           CE     $43,880    $38,442    $33,187    $28,113

            premium               $20            EU    290.0149   280.0632   270.1115   260.1598
            payout if no job     $200            CE     $44,109    $38,435    $32,960    $27,683
     0.5

250.0000
 $22,500

254.9510
 $25,000

254.8737
 $24,961

251.4405
 $23,222

250.2081
 $22,604

				
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