1. Chapter 14 Uncertainty and the Emergence of Insurance

2. Copyright © 2001 Addison Wesley LongmanSlide 14- 2 Figure 14.1 Discrete Probability Distribution

3. Copyright © 2001 Addison Wesley LongmanSlide 14- 3 Figure 14.2 Continuous Probability Distributions

4. Copyright © 2001 Addison Wesley LongmanSlide 14- 4 Figure 14.3(a) Two Investments in Wheat Production

5. Copyright © 2001 Addison Wesley LongmanSlide 14- 5 Figure 14.3(b) Two Investments in Wheat Production

6. Copyright © 2001 Addison Wesley LongmanSlide 14- 6 Figure 14.4 Risk Neutrality

7. Copyright © 2001 Addison Wesley LongmanSlide 14- 7 Figure 14.5 Risk Aversion

8. Copyright © 2001 Addison Wesley LongmanSlide 14- 8 Figure 14.6 Risk Preference

9. Copyright © 2001 Addison Wesley LongmanSlide 14- 9 Figure 14.7 Risk Aversion and Insurance

10. Copyright © 2001 Addison Wesley LongmanSlide 14- 10 Figure 14.8 Risk Preference and Insurance

11. Copyright © 2001 Addison Wesley LongmanSlide 14- 11 Figure 14.9(a) Risk-Averse Geoffreys and Risk- Preferring Elizabeths

12. Copyright © 2001 Addison Wesley LongmanSlide 14- 12 Figure 14.9(b) Risk-Averse Geoffreys and Risk- Preferring Elizabeths

13. Copyright © 2001 Addison Wesley LongmanSlide 14- 13 Figure 14.10 Willingness to Sell Insurance

14. Copyright © 2001 Addison Wesley LongmanSlide 14- 14 Figure 14.11(a) Risk and Variance

15. Copyright © 2001 Addison Wesley LongmanSlide 14- 15 Figure 14.11(b) Risk and Variance