Bob and terri each make 40000 per year and have 5000 cash, Business Economics

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Bob and terri each make 40000 per year and have 5000 cash

Bob and Terri each make $40,000 per year and have $5,000 cash in the bank. Bob has a risk of loss of $2,000 (30%), $3,000 (30%) and $0 (50%). Terri has a risk of loss of $300 (40%), $40,000 (5%) and $0 (55%). Who needs to buy insurance the most? Calculate and explain.

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Business Economics: Bob and terri each make 40000 per year and have 5000 cash

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