Ana owns a car worth €50 000 which can get stolen with probability 1%. She can pur- chase coverage of the amount q = [0; 50 000] at premium 7 = €0.05 for each euro covered. Her utility function is u = In(w), where w is money. Assume she has no other assets. (a) Formulate her maximization problem. (b) How much insurance (9) will she choose to buy? Explain. (c) How much profits does the insurance company earn on insuring Ana?

2. Evaluate f(x) = e3x + 2 at x = -1. Round to the nearest thousandth. f(-1) = amazon B. acer PrtSc SysRq Pause Break Inse F8 F9 F10 F11 F12 02 A Scr Lk * %2:

The function f(s) = 400 + 0.0066667s2 – 0.0000001s4 approximates the length of the cable between the two vertical towers of a suspension bridge, where s is the sag in the cable. Estimate the length of the cable of the bridge in the next column if the sag is 28.3 feet. (Round your answer to the nearest foot.) ft 400 ft

(D) Find the value of x (to the nearest thousand chips) that produces the maximum profit. Find the maximum profit (to the nearest thousand dollars), and compare it to the maximum revenue. The maximum profit occurs at x = million chips. (Round to three decimal places as needed.)