Suppose someone knew the probability of incurring a $10,000 medical expense was 5% and the odds of being healthy and incurring no expenses was 95%. If they used that information to compare the expected cost to them ($500) with the $600 premium it wouldcost to get full coverage and decided to buy the insurance then economists would say they are
a) irrational
b) risk loving
c) risk averse
d) risk neutra
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