Assume that an insurance agent offers Charline an index insurance contract which is based on temperature (in general, seashell harvest is worse when…

Assume that an insurance agent offers Charline an index insurance contract which is based on temperature (in general, seashell harvest is worse when temperatures are low). The insurance premium is $40. There are two possible values of temperature, LOW and HIGH. When temperature is LOW, the insurance company makes a payout of $100 to Charline. When temperature is HIGH, the insurance company doesn’t pay Charline anything. Like most index insurance contracts, this one is not perfect. Sometimes Charline would have a BAD seashell harvest even though temperature is HIGH and sometimes she would have a GOOD seashell harvest even though temperature is LOW. So there are four possible outcomes for Charline if she insures her business. Their probabilities are as follows:   Pr(LOW temperature and BAD harvest) = .30;   Pr(LOW temperature and GOOD harvest) = .10;  Pr(HIGH temperature and BAD harvest) = .10;  Pr(HIGH temperature and GOOD harvest) = .50Which activity will Charline choose? (Open business without insurance, Open business with insurance, Economics tutor.

Give us your instructions.
Select the type of service you need: writing, calculations, or programming. We’ve created an intuitive order form that tells you what information to enter and where, so make sure to fill out each required field. Also, make your requirements as specific as possible. Don’t rush! Take your time and explain everything in detail how it works.

Proceed to checkout and enter your credit card details or PayPal login, how to pay. Follow the payment provider’s instructions to confirm the transaction.
Now your order is in our system! We’ll start processing it right away.