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Po Noro each covers the Answere The most that she would be willing to pay year for an insurance policy that completely Potential loss of her vehicle: E-U= 0.95 xu (0) +009 XU(-8000) -0.95 x{0+10000306+008 (-8000 +10000) 05 +22360 =97.9360 -97 2360 (x +10000 10:15 Here, By squaring the both sider. * +10000.- (97-236) 2 X + 10000 =9454.8396 X = 9454.8296 -10000 * 3-64546. (approximately). Since the loss become $545.16, she should be paying insurance premium of $ 545.16 in each year. is correct a a544.38
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