In the table below x denotes the X-Tract Company’s projected annual profit (in $1,000).  The table also shows the probability of earning that profit.  The negative value indicates a loss.   x f(x)   x = profit   -100 0.01   f(x) = probability -200 0.04       0         100 0.26       200 0.54       300 0.05       400 0.02

For a particular disease, the probability that a patient passes away within the xth year is given by the following table:   x P(x) 0 0.039 1 0.034 2 0.337 3 0.291 4 0.25 5 0.023 6 0.026   This means that the probability that someone passes away within the first year is 0.039. The probability that they pass away after one year would be 0.034.  What is the mean number of years someone survives?  (round to two decimal places) What is the standard deviation for the number of years someone survives?  (round to two decimal places) The Range Rule of Thumb for survival would be:  years to  years. (Round each to two decimal places.) In your own words, interpret what the Range Rule of Thumb tells us about this disease. (If you don't remember what the Range Rule of Thumb is, review the heading "Unusual Values" in the Learning Activities.)

Could you help me answer this question?

A bet slip pays out £8000 with probability 0.02. You are (very) risk-seeking and choose as utility function U(x)=x4. What is your risk premium for that bet (rounded to the nearest pound)?