Answered

Welcome to Westonci.ca, where finding answers to your questions is made simple by our community of experts. Join our platform to connect with experts ready to provide accurate answers to your questions in various fields. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

Suppose Elmira has a wealth of $45,000 and that she might incur a loss of $10,000 due to hospitalization. The probability that she will be hospitalized is 1%. Humana healthcare group offers her a health insurance policy with the following terms: to purchase K dollars of insurance benefit, she has to pay K as a premium where 0<<1. If the insurance company is competitive and Elmira is risk-averse, how much of insurance benefit will Elmira buy? How much does she pay as a premium?

Sagot :

Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.