Nsurance – Suppose that your wealth is $10,000. Out of $10,000, $1000 is the value of your house. The probability that your house will be on fire is 10%, and you lost all the value of your house if it catches fire. a. Define the gamble b. Calculate the expected value of the gamble c. Now, suppose your utility function is = W1/2 . Calculate the Certainty Equivalent and the maximum willingness to pay for the insurance premium. d. Without calculating all the math again, what happens to the maximum willingness to pay for insurance premium if the probability of your house will be burned increase to 20%?

A)there is a strong positive correlation

B)A function that best fits the data is

C)Slope indicates the rate of change of Number of products per employee

y intercept indicates number of products when number of employees are 0

Step-by-step explanation:

Number of employees (x) 0  25  50  75  100  125  150  175  200

Number of products (y)   10 160 310 460 610 760 910 1060 1210

Part A: Is there any correlation between the number of employees in the plant and the number of products produced yearly?

Mean of x values =

Mean of y values =

N =No. of observations= 9

R Calculation

So, there is a strong positive correlation

B: Write a function that best fits the data.

Regression Equation = ŷ = bx + a

So, a function that best fits the data is

C)What does the slope and y-intercept of the plot indicate?

Slope indicates the rate of change of Number of products per employee

y-intercept indicates the y-coordinate of a point where a line, curve, or surface intersects the y-axis.

So, y intercept indicates number of products when number of employees are 0 .