see the sample below and create a brand new story and whole new stats question and please be as specific as possible and please do chat with me if any problem

Get perfect grades by consistently using our writing services. Place your order and get a quality paper today. Take advantage of our current 20% discount by using the coupon code GET20

Order a Similar Paper Order a Different Paper

should include A one-page description of your problem and its importance

A one-page discussion of the solution procedure and the rationale

One or more pages of presentation of your results

One or more pages of discussion of your insights, critique, and possible expansion for the application

see the sample below

A person has a net asset of $1 million, including a $300,000 net equity of a house (market value of the house – mortgage).Specifically, the house has a market value of $500,000 including $350,000 for the structure and $150,000 for the land, and a mortgage of $200,000.The person plans to buy $350,000 fire insurance for full coverage of the house.For simplicity, assume that each year the house has a 1% probability of being totally destroyed by fire and a 99% probability of no damage occurring to the house.The person’s utility for money is approximately proportional to the quartic root of money with U($100,000,000)=100 and U($0)=0.

7a. Draw the decision tree for the person’s decision of buying or not buying the insurance.

7b. Determine the maximum insurance premium IP the person would be willing to pay.

7c. What is the risk premium at the maximum IP?

Got stuck with another paper? We can help! Use our paper writing service to score better grades and meet your deadlines.

Get 15% discount for your first order

Order a Similar Paper Order a Different Paper

Looking for this or a Similar Assignment? Click below to Place your Order Instantly!