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# What would be the threshold value at which buying insurance would be “”worthwhile for both parties””?

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### What would be the threshold value at which buying insurance would be “”worthwhile for both parties””?

Consider that number of people N willing to buy cars at a given price P varies according to the
Function. N = 5000 × 2P
Note that, for example, a person willing to buy a car at a price of \$200 will also be willing to buy a car at \$100 and will be included under both. This is not a function of the number of persons with the price returned as the most they will pay. : Consider that I have an asset worth \$2000. There are two independent threats. The first occurs with probability 0.05 and would reduce the value of the asset to \$100, while the second occurs with probability 0.01 and would completely destroy the asset. Both could occur. What would be the threshold value at which buying insurance would be “”worthwhile for both parties””? Be sure to show working.

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### Details

• Title: What would be the threshold value at which buying insurance would be “”worthwhile for both parties””?
• Price: £ 300
• Post Date: 2018-11-10T11:42:27+00:00
• Category: Assignment
• No Plagiarism Guarantee
• 100% Custom Written

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