Answer to Question #48587 in Math for Prashant

Question

You are a property insurer and your client,Patricia, whose current wealth is 1.4million dollars wants to insure her 730000$ house. the chances of the house burning down is 1.5 in a thousand, renata's utility function is u(w)=sqrt(w).

will she buy insurance policy if you offer it to her for 1164$???

any help would be appreciated