Use the Following to Answer Questions

question 65

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. When Alan's probability of developing a health problem decreases, holding everything else constant, Alan's expected value of health care costs:

• A) increases.
• B) decreases.
• C) stays constant.
• D) increases, decreases, or stays constant.

---

Definitions:

Public Safety

Pertains to the maintenance of a safe and secure environment for citizens by enforcing laws, preventing crimes, and managing emergencies.

Police Force

A constituted body of persons empowered by a state to enforce the law, protect property, and limit civil disorder.

Gas Lights

refers to a type of illumination produced by burning gaseous fuel, such as hydrogen, methane, carbon monoxide, or natural gas, which was widely used before the advent of electric lighting.

American Renaissance

A period in the mid-19th century marked by a flourishing of American art, literature, and culture, emphasizing themes of national expansion and individualism.