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help pls don not under stand

Olivia used her past health history and information about her 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
three doctor visits 32% $75 $1,050
medication 45% $72 $225

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 $

.

help pls don not under stand Olivia used her past health history and information about her doctor visits to create this table to compare health costs with and w class=

Respuesta :

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

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

What are the expected values?

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.

To learn more about multiplication, please check: https://brainly.com/question/13814687

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