Mathematics, 29.04.2021 17:00 janahiac09
Paul has the option of a high deductible or a low deductible health insurance plan.
If Paul chooses the low deductible plan, he will have to pay the first $1000 of any medical costs, and the rest of
the costs will be paid by his insurance company. The low deductible plan costs $8000 for a year.
If Paul chooses the high deductible plan, he will have to pay the first $2500 of any medical costs, and the rest of
the costs will be paid by his insurance company. The high deductible plan costs $7500 for a year.
To help himself choose a plan, Paul found some statistics about common health problems for people similar to
him. Assume that the table below correctly shows the probabilities and costs of total medical incidents within
the next year.
Including the cost of insurance, what are the expected total medical costs that Paul must pay with the low
deductible plan? Round your answer to the nearest dollar. $
Including the cost of insurance, what are the expected total medical costs that Paul must pay with the high
deductible plan? Round your answer to the nearest dollar. $
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Paul has the option of a high deductible or a low deductible health insurance plan.
If Paul choose...
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