Mathematics, 08.04.2020 21:53 dondre54
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
100%
Cost with
Insurance
Plan
Cost Without
Insurance
Plan
$0
$1,580
$25
30%
annual premium
single doctor visit
two doctor visits
medication
$350
$50
$700
18%
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 $
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Answers: 3
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