Use the following to answer question:
-(Table: Natasha's Total Utility) Use Table: Natasha's Total Utility.Natasha earns $50,000 per year but faces losing $20,000 of it if she is late with her work.If there is a 25% probability that Natasha will be late with her work and her income will equal $30,000,To guarantee an income of $50,000,Natasha would be willing to pay _____ for insurance.
A) $4,000
B) $5,000
C) $7,500
D) $9,500
Correct Answer:
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