Tag Archives: Insurance

Test Your Intuition (11): Is it Rational to Insure a Toaster

Here is a question from last year’s exam in the course “Basic Ideas of Mathematics”:   You buy a toaster for 200 NIS ($50) and you are offered one year of insurance for 24 NIS ($6).   a) Is it … Continue reading

Posted in Probability, Rationality, Teaching, Test your intuition | Tagged , | 18 Comments