rth of insurance,he must pay the insurance company$3x=17 whether there is a flood or not,but he gets back $x from thecompany if there is a flood,Willy should buy(a) no insurance since the cost per dollar of insurance exceeds the prob-ability of a flood.(b) enough insurance so that if there is a flood,after he collects his insur-ance his wealth will be 1/9 of what it would be if there is no flood.(