Assume a High-Risk;person Has a 0

question 10

Multiple Choice

Assume a high-risk;person has a 0.50 probability of a $500 medical expense and a low-risk person has a 0.10 probability of a $500 medical expense.Both types of people are risk averse.What is the community rating premium for a neighborhood containing exactly half of each type of person?

• A)$300
• B)$250
• C)$150
• D)$50

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Definitions:

Heavy Drinking

The consumption of alcohol in large quantities, often exceeding recommended limits, potentially leading to health and social issues.

First Three Months

Typically refers to the initial trimester in pregnancy or the early stages of a given process or period.

Environmental Factors

External elements that can influence development, health, and behavior, including climate, pollution, and social conditions.

Motor Skills

The abilities required to coordinate and execute physical actions and movements, such as walking, running, and writing.