For the HMO vaccination program example provided in the chapter, reanalyze the situation assuming that the probability of a flu outbreak is 65 percent and the cost of the vaccination program is $8 million. What is your decision under these new conditions?

HMO Vaccination Program

With the given probability of a flu outbreak at 65 percent and the cost of the vaccination program at $8 million, my decision under these new conditions is:

To go ahead with the vaccination program in order to protect the health of the people since the assessed chance of a flu outbreak is high at 65%.

Explanation:

However, for any vaccination program to be effective, the whole population must be targeted and achieving 100% coverage must be assured.  In the past, many such programs have failed because of ineffective coverage of the population.  While vaccination is important, prevention of the root cause of such flu outbreaks remains paramount as it is also the least costly measure.

the answer is a. $209,000

answer; someone must cover the cost associated with the provision of scarce goods in both sectors;