What would be her attitude toward risk ie risk neutral risk
If Susan is willing to pay up to $800 for a car insurance against a loss of $1,000 which will occur with a 70% probability, what would be her attitude toward risk? (i.e., risk neutral, risk averse, or risk loving) How much would be her risk premium?
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if susan is willing to pay up to 800 for a car insurance against a loss of 1000 which will occur with a 70 probability
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