Teams in Major League Baseball are required to give guaranteed contracts through collective bargaining. This means that even if a player gets injured,
they are still entitled to the terms of their contract. Thus, MLB teams frequently purchase insurance against injury of their star players. Don't worry,
you don't need to be a baseball fan to answer this question!
Suppose a team will earn a profit of $40.00 million if its star player can play, but the team's profit falls to $5.00 million if this player gets a season-
ending injury. Assume that the probability of this player getting injured is 0.05.
The team's utility function for profit is $U(\pi) = \pi^{\frac{1}{3}}$.