c = o .

Gro + 04 s

60 + 28.28 ( = 10000 -

180
-

287]
= =
8828
; =
2205 88 .

(v) Now let calculate

utility for all all three
groups if
grouper buy insuace
for 1500

=
No000
1500 -

=
5500
= 92 19 .

(VI) Since Ap = 1137 66 .

which in Menthon 1500

A will not
by but B & C
might buy
:

·: New insman
price in
P =
(0 ·

3X5000 + 0
·

4x5000
= 1750

Sinc B = 1680 74 which in lesr than 1755

P
.

B will not
buy insurance for 1750.

price for 2
: New insurance = 0 .

4x5000 =
2000

:
Inman Cin ben than 2205 88
ping
.

buy
I will insurance

For
profit
: max , insuace should be

lold at P= 2205 88 .