Tech has three health care plans for its faculty and staff to choose from, as follows: Plan 1-monthly cost of $32, with a $500 deductible; the participants pay the first $500 of medical costs for the year; the insurer pays 90% of all remaining expenses. Plan 2-monthly cost of $5 but a deductible of $1,200, with the insurer paying 90% of medical expenses after the insurer pays the first $1,200 in a year. Plan 3-monthly cost of $24, with no deductible; the participants pay 30% of all expenses, with the remainder paid by the insurer. Tracy McCoy, an administrative assistant in the management science department, estimates that her annual medical expenses are defined by the following probability distribution: Annual Medical Expenses Probability S 100 .15 500 30 1,500 35 3,000 .10 5,000 .05 10,000 .05 Determine which medical plan Tracy should select.
Tech has three health care plans for its faculty and staff to choose from, as follows: Plan 1-monthly cost of $32, with a $500 deductible; the participants pay the first $500 of medical costs for the year; the insurer pays 90% of all remaining expenses. Plan 2-monthly cost of $5 but a deductible of $1,200, with the insurer paying 90% of medical expenses after the insurer pays the first $1,200 in a year. Plan 3-monthly cost of $24, with no deductible; the participants pay 30% of all expenses, with the remainder paid by the insurer. Tracy McCoy, an administrative assistant in the management science department, estimates that her annual medical expenses are defined by the following probability distribution: Annual Medical Expenses Probability S 100 .15 500 30 1,500 35 3,000 .10 5,000 .05 10,000 .05 Determine which medical plan Tracy should select.
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Tech has three health care plans for its faculty and staff to choose from, as follows:
Plan 1-monthly cost of $32, with a $500 deductible; the participants pay the first $500 of medical
costs for the year; the insurer pays 90% of all remaining expenses.
Plan 2-monthly cost of $5 but a deductible of $1,200, with the insurer paying 90% of medical
expenses after the insurer pays the first $1,200 in a year.
Plan 3-monthly cost of $24, with no deductible; the participants pay 30% of all expenses, with
the remainder paid by the insurer.
Tracy McCoy, an administrative assistant in the management science department, estimates that
her annual medical expenses are defined by the following probability distribution:
Annual Medical Expenses
Probability
$ 100
.15
500
.30
1,500
.35
3,000
.10
5,000
.05
10,000
.05
Determine which medical plan Tracy should select.
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