onsider Bruno who manages an underwriting team in an insurance firm. Recently, the management of Bruno’s firm informed him of their decision to create a new risk assessment team, consisting of data scientists with machine learning expertise, and reduce the size of Bruno’s underwriting team. Bruno’s underwriting team will now work with the new risk assessment team in order to determine whe
Consider Bruno who manages an underwriting team in an insurance firm. Recently, the management of Bruno’s firm informed him of their decision to create a new risk assessment team, consisting of data scientists with machine learning expertise, and reduce the size of Bruno’s underwriting team. Bruno’s underwriting team will now work with the new risk assessment team in order to determine whether to provide insurance to applicants.
Consider Angela who currently works as a data scientist with machine learning expertise. Recently, she was offered a job by Bruno’s firm. The job offer includes a higher salary than her current job and the freedom to choose the number of work hours per day. But Angela is also an amateur musician who desperately dreams of becoming a professional one day. This motivates her to practice music as much as possible, which makes her value her free time very much. Using the model of individual choice, and assuming Angela accepts the job offer, graphically illustrate the impact on her choice of free time and consumption. Fully label your diagram. Note that there are no actual numbers given in this question: you may make them up or simply use appropriate notations. Explain specifically its impact on the following: • Angela’s choice of free time • Angela’s consumption level • Angela’s utility level
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