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Unformatted text preview: Blue-book 25 out of 50 pts. (2 qns., 12 pts. each + 1) Answer these questions in your blue-book. Show your work and intermediate steps for partial credit. Points are split equally across all sub-parts. Your score will only be based on the marks in your blue-book. You will not receive any credit for anything written on your exam paper. You will receive 1 extra point for correctly writing your name, perm number, version (A,B,C, or D), and TAs name on your blue-book. 1. Ying-Ru is beginning her senior year of college soccer and is deciding whether or not to buy insurance in case she is injured. There is a 50% chance she will not be injured and a 50% chance she will be. If she is not injured, she will received a $400 contract to play professionally. If she is injured, she will receive a $100 contract to carry water bottles. (a) Ying-Rus utility from her consumption is given by u ( c ) = c . What is her expected utility if she does not buy insurance?...
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- Spring '08