first and foremost, I want to state that this is a homework question and I'm not sure if its against the rules, but I'm not looking for the answer, I'm just looking for the methodology to solve it as I can't find it anywhere else.
There was a post similar to this previously, but I had a hard time understanding it.
how do i calculate the threshold value of the following problem?
Is there anyone that can guide me through this question?
Expected value from the asset Ev=$2000-1900\cdot 1({\text{event 1 occurs but 2 does not}})-2000\cdot 1(\text{event 2 occurs}) $
The point is if the asset (suppose a car) is totally destroyed, a reduction in value of the asset is irrelevant, I would not be able to sell the car and get anything out of it in any case.
I should be ready to pay $2000$-Ev