Because People with Hidden Health Problems Are More Likely to Buy

question 95

Multiple Choice

Because people with hidden health problems are more likely to buy health insurance than are other people,which outcome is the result

• A)The price of health insurance reflects the costs of a sicker-than-average person.
• B)The price of health insurance is too low, relative to the socially optimal price.
• C)People in average health may be encouraged to buy too much health insurance, relative to the socially optimal quantity.
• D)People in higher risk may be buying too little insurance due to the higher cost.

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Definitions:

P-chart

is a statistical tool used in quality control to monitor the proportion of defectives in a process and determine if that process is in a state of control.

Typographic Errors

Mistakes made in the typing or printing process, often resulting in incorrect spelling, punctuation, or layout in text.

Exponential Distribution

A statistical distribution used to model the time between events in a process where events occur continuously and independently at a constant average rate.

X-bar Chart

A statistical tool used in quality control processes to monitor the mean (average) of a series of samples over time and identify any significant shifts.