Use the Following to Answer Questions

question 175

Multiple Choice

Use the following to answer questions:
Scenario: Health Costs
Alan is hoping for a healthy year, meaning that he would have zero health costs. Given his habits, there is a 40% chance that Alan will develop a health issue resulting in $50,000 in health costs. Assume these are the only two conditions that could exist for Alan in the coming year.
-(Scenario: Health Costs) Look at the scenario Health Costs. Given the fact that Alan has a 40% chance of developing a health problem, what is the expected value of Alan's health care costs for the coming year?

• A) $0
• B) $50,000
• C) $20,000
• D) $16,000

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Definitions:

Forgive Remember

The process of choosing to forgive someone while still remembering the incident to learn from it without holding a grudge.

Perceptual Blocks

Cognitive obstacles that prevent a person from perceiving or interpreting new information correctly.

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The process of generating innovative solutions by integrating creativity with traditional decision-making methods.

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Interactions or connections between individuals or entities that are not physically present with each other, often facilitated through digital means.