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Serga [27]
2 years ago
14

Olivia used her past health history and information about her doctor visits to create this table to compare health costs with an

d without insurance. description of service probability of needing the service cost with insurance plan cost without insurance plan annual premium 100% $1,580 $0 three doctor visits 32% $75 $1,050 medication 45% $72 $225 what is the expected value of each option?
Mathematics
1 answer:
shusha [124]2 years ago
5 0

The expected value of health care without insurance is $437.25.

The expected value of health care with insurance is $1,636.40.

<h3>What are the expected values?</h3>

The expected values can be determined by multiplying the respective probabilities by its associated costs.

The expected value of health care without insurance

                                                         = (1 x 0) + (0.32 x 1050) + (0.45 x $225)  

                                                         = $437.25

The expected value of health care with insurance

                                                          = (1 x 1580) + (0.32 x 75) + (0.45 x $72)

                                                          = $1,636.40

Thus, The expected value of health care without insurance is $437.25.

         The expected value of health care with insurance is $1,636.40.

Learn more about Expected value from:

brainly.com/question/13945225

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Complete Question:

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2696 kilocalories

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First we need to calculate Rick's Basal Metabolic Rate( BMR)

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