Scatterbrain Samantha often forgets to lock her house.This has caused the probability of a burglary to be 30%.If her house gets broken into,she faces a property loss of $10,000,otherwise she gets to keep her $100,000.If Samantha is offered an insurance policy for her house to protect her from loss at $3,000,would she buy the insurance?
A) Yes because she gets to now enjoy her wealth risk-free
B) No,because she can take the risk and be better off
C) Yes,because she is a risk lover
D) None of the above
Correct Answer:
Verified
Q16: Someone who values a lottery at more
Q17: Individuals who face greater risks
A)are more likely
Q18: Most people buy insurance because they
A)are risk
Q19: A risk neutral individual
A)Values a lottery at
Q20: The following is not an example of
Q22: An indication that Insurance companies anticipate adverse
Q23: An indication that Insurance companies anticipate adverse
Q24: Scatterbrain Samantha often forgets to lock her
Q25: Which firm is not dealing with adverse
Q26: The "lemons" problem is that
A)cars of verifiable
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