Q 1. If there are 10,000 people in your age bracket, and 10 of them died last year, an insurance company believes that the probability of someone in that age bracket dying this year would be 2. On any given day we know a salesman can earn $0 with a 30% probability, $100 with a 20% probability or $300 with 40% probability. His expected earnings equal 3. Someone who is risk-averse has 4. If two events are positively correlated but NOT perfectly correlated, then 5. Adverse selection is due to

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