Business, 20.06.2020 19:57 darenl3601
Suppose you face a choice between a certain income of $3,000, or a 50-50 chance of income of $1,500 or $4,500. Suppose you prefer the 50-50 chance of $1,500 or $4,500
1. True or False: You are not risk averse
a) True
b) False
Suppose that a disease affects 4% of the population and that everyone is equally likely to get the disease. Treatment for this disease costs $28,000. Assume that this disease, and necessary treatment, represent the only healthcare costs in this population
2. The expected cost of healthcare is $.
3. If people (Prefer/ Do Not Prefer) to pay the expected cost of healthcare with certainty, rather than take on the 4% risk of having to pay the full cost of the treatment, they are risk averse.
(I promise I'll rate your answer)
Answers: 1
Other questions on the subject: Business
Business, 22.06.2019 16:30, ggggggggv24
On april 1, the cash account balance was $46,220. during april, cash receipts totaled $248,600 and the april 30 balance was $56,770. determine the cash payments made during april.
Answers: 1
Business, 22.06.2019 17:30, neriah30
Fabian got into an accident on his way to work. he had multiple fractures in his leg. his doctor advised strict bed rest for at least three months. fabian is a freelance wildlife photographer who usually works on a contract basis, and this is his primary source of income. before the accident, fabian was planning his finances. which goal of his financial plan would fabian in getting through without pay for the next three months? the goal that requires the creation of a/an would fabian get through the next three months without pay.
Answers: 1
You know the right answer?
Suppose you face a choice between a certain income of $3,000, or a 50-50 chance of income of $1,500...
Questions in other subjects:
Mathematics, 09.11.2020 20:50
History, 09.11.2020 20:50
