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Mathematics, 14.06.2020 02:57, Thin
Bob's farm harvests corns worth 109 dollars (and nothing else). In each year, there is a 24% chance that a storm will attack and leaves him with only 28 dollars worth of the corns. Bob's preferences over wealth are represented by . What is the maximum that Bob is willing to pay for full insurance (in unit of thousand dollars)
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Bob's farm harvests corns worth 109 dollars (and nothing else). In each year, there is a 24% chance...
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