Smith just bought a house for $250,000. earthquake insurance, which would pay $250,000 in the event of a major earthquake, is available for $25,000. smith estimates that the probability of a major earthquake in the coming year is 10 percent, and that in the event of such a quake, the property would be worth nothing. the utility (u) that smith gets from income (i) is given as follows:

u(i) = i0.5. (smith’s utility is the square root of her income.
should smith buy the insurance?
a) yes.
b) no.
c) smith is indifferent.
d) we need more information on smith's attitude toward risk.

forbearance of student loan payments. under forbearance, your loan payments are postponed (or reduced) but interest continues to accrue during the period of forbearance. if you don't pay the interest during that period, the interest may be “capitalized,” which means it is added to your principal balance.

the correct answer is - no.

winnipeg, canada, is not further away from the equator than moscow, russia, in fact moscow is the city that is further away from the equator. moscow is on a latitude of 55.7558° north, while winnipeg is on a latitude of 49.8951° north, thus putting moscow by 5.8607° further away from the equator than winnipeg is.