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Question: question 8 3 pts like victoria from the previous questions...

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Question 8 3 pts Like Victoria from the previous questions, David has $2000 to put toward consumption this month. Also like Victoria, David believes there is a 40% chance he will have a bike accident this month, in which case he expects to incur medical costs of $1500 (leaving him with $500 to put toward consumption). Unlike Victoria, though, Davids utility over consumption is given by Suppose again that the premium for $1500 in insurance coverage is $750, and that the premium for $500 in insurance coverage is $250 (i.e., neither is priced at an actuarially fair rate). Calculate Davids expected utility associated with having no insurance as well as with each of the two insurance options (full and partial). Based on your new answers, fill in each of the blanks below for the case in which insurance is not actuarially fair with>, , or- EUlno insurance) EU(partial insurance) EUlno insurance) EUlfull insurance) EU(partial insurance) EUlfull insurance) In each blank, enter only >, <, or =. Each entry is worth 1 point. Hint: In this question, it is important to pay attention to the decimal places (at least out to the hundredth place).

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