Woody is currently unemployed and without health insurance coverage. He derives utility (U) from his interest income on his savings (Y) according to the following function: U = 6(Y1/2) Woody presently makes about $40,000 of interest income per year. He realizes that there is about a 5 percent probability that he may suffer a heart attack. The cost of treatment will be about $20,000 if a heart attack occurs.
A. Calculate Woody's expected utility level without any health insurance coverage.
B. Calculate Woody's expected income without any insurance coverage.
C. Suppose Woody must