A decision maker has utility function u(w) = k log w. The decision maker has wealthw; w > 1, and face a random loss X, which has a uniform distribution on the interval (0; 1). Employ formula u (w-G) = E [u(w - X)] to show that the maximum insurance premium that the decision maker will pay for complete insurance is
G=w-(w^w)/(e(w-1)^(w-1))