Mathematics, 08.03.2020 02:48 jtaylor4061
Sammy used his past health history and information about his doctor visits to create this table to compare health costs with and without insurance.
Description of Service Probability of Needing the Service Cost with Insurance Plan Cost Without Insurance Plan
annual premium 100% $1,580 $0
single doctor visit 30% $25 $350
two doctor visits 18% $50 $700
medication 6% $24 $75
What is the expected value of each option?
The expected value of health care without insurance is $
.
The expected value of health care with insurance is $
.
Answers: 1
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