I am trying to solve the question above, any help would be great, thank you!

Suppose that a decision maker’s risk attitude toward monetary gains or Ideas 1 given by the utility function um = “150.000 +X}. If there is a 2% chance that one of the decision maker’s family heirlooms. valued at $6,000 will be stolen during the next year. what is the most that shewould be willing to pay each year for an insurance policy that completer covers the potential Ides of her cherished items? (Hint: Fleoall. tor example. that if Intz} = C. then 2 = QC.)

"Get 15% discount on your first 3 orders with us"
Use the following coupon

Order Now