How to Solve for Certainty Equivalent and Risk Premium

This video will show how to calculate:
Expected utility
Certainty Equivalent
Expected Value
Risk Premium
Actuarially Fair Insurance Policy
Maximum willingness to pay for insurance

[@Furretcoin]

Sir you are a genius, I finally understood it, All I needed was an example like this to clear up my doubts thanks

[@domingosnhamussua3070]

Iam in love with this channel, it teaches microeconomics so well

[@SureshKumar-mh2yn]

It's helpful for Actuarial Science. Thanks Sir🙏😊

[@economicsowl630]

You are great sir

[@oyundari3363]

glad i found this one

[@EconomicsinManyLessons]

Glad to hear that!

[@thatghana]

You sir are FAN-TAS-TIC

[@suryaprakash7759]

Good to understand in so simple way... But the last concept is not clear that why we added 500+124.8 ?... Iit may be a basic concept but as i am new so asking this

[@srijaniroychowdhury]

It’s the maximum insurance premium the individual is willing to way so we add the the risk premium (the minimum premium he is willing to pay) and the extra premium he must pay to get full coverage on the loss.

[@suryaprakash7759]

@@srijaniroychowdhury ok . Thanks for replying..