(Fill in the 4 blanks.) A monthly pass for the Stockholm subway costs $100, and fare dodgers who are caught face a fine of about $160. Stockholm transport has increased the number of ticket checks...

Extracted text: (Fill in the 4 blanks.) A monthly pass for the Stockholm subway costs $100, and fare dodgers who are caught face a fine of about $160. Stockholm transport has increased the number of ticket checks conducted, and the probability of being caught while riding the subway without paying is now 1%. Liam rides the subway 50 times a month, so that each month the probability that he is caught equals 50 x 1% = !3! 50% and he expects to pay 50 (0.01 x $160) = $80 in fines each month he rides the subway without buying the monthly pass. If Liam does not purchase a monthly pass, his expected monthly savings are $ (accepted format is dollars and cents xXx.xx). Liam's utility of saving $S equals VS , so that if he does not purchase a monthly pass, his expected utility equals (round to 2 decimals: xxx.xx). Liam's certainty equivalent is savings equal to $52.42, and thus Liam's (do not capitalize your answer and make sure to spell correctly) is $7.58. Liam can purchase full insurance from Planka.nu, which will pay the fine every time Liam is caught riding the subway without a pass. Liam is willing to pay up to $ (accepted format is dollars and cents x.xx) a month for insurance from Planka.nu.