Project Management AssignmentYour home is worth 500k. Each year, there is a 0.02% chance that a flame will happen and cause a complete harm. Furthermore, there is a 0.05% chance that a flame will happen and cause a fractional harm worth 200k. What is the flame protection premium every year for your home expecting that insurance agencies require a 20% benefit? Assume that the measure of your fluid riches is 100k and that your hazard avoidance parameter is y=1. Will you purchase the protection? What is your reservation cost for the protection?
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