There Is an 80% Probability That Hong Will Be in Good

question 112

Multiple Choice

There is an 80% probability that Hong will be in good health during the year and incur only $200 in medical expenses, but there is a 20% probability that he will be ill and incur $20,000 in medical expenses. If an insurance company charged Hong an actuarially fair premium, how much would Hong pay for health insurance?

• A) $3,840
• B) $4,000
• C) $4,160
• D) $3,460

Recognize the role and treatment of salvage value in investment evaluation.

Understand the payback period method and its limitations in investment decisions.

Comprehend the concept of required rate of return and its application.

Discern the assumptions underlying the net present value and internal rate of return methods.

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Definitions:

Situational-Background-Assessment-Recommendation (SBAR)

A communication framework used in healthcare to facilitate clear and effective communication among healthcare professionals.

Intensive Care Unit

A specialized hospital department equipped to provide intensive treatment and monitoring for critically ill or injured patients.

Furosemide (Lasix)

A diuretic medication commonly used to treat fluid build-up due to heart failure, liver scarring, or kidney disease by increasing urine production.

Diuresis

The increased production and passage of urine, often induced by certain medications or conditions, leading to the removal of excess fluids from the body.