Determine the average spending.

Question

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Answer 1

Question

Chapter 6, Problem 1E

To determine

Determine the average spending.

Expert Solution & Answer

Explanation of Solution

The average spending of high-risk patients is $40,000, low-risk patients is $1,000, and the overall low-risk patients is 90%.

Therefore, the average spending for this population can be calculated as follows:

Average spending=(% of low risk patients×Average spendinglow risk)+(% of high risk patients×Average spendinghigh risk)=(0.90×1,000)+(0.10×40,000)=900+4,000=4,900

Thus, the average spending is $4,900.

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Answer 2

Question

Chapter 6, Problem 1E

To determine

Determine the average spending.

Expert Solution & Answer

Explanation of Solution

The average spending of high-risk patients is $40,000, low-risk patients is $1,000, and the overall low-risk patients is 90%.

Therefore, the average spending for this population can be calculated as follows:

Average spending=(% of low risk patients×Average spendinglow risk)+(% of high risk patients×Average spendinghigh risk)=(0.90×1,000)+(0.10×40,000)=900+4,000=4,900

Thus, the average spending is $4,900.

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Answer 3

Question

Chapter 6, Problem 1E

To determine

Determine the average spending.

Expert Solution & Answer

Explanation of Solution

The average spending of high-risk patients is $40,000, low-risk patients is $1,000, and the overall low-risk patients is 90%.

Therefore, the average spending for this population can be calculated as follows:

Average spending=(% of low risk patients×Average spendinglow risk)+(% of high risk patients×Average spendinghigh risk)=(0.90×1,000)+(0.10×40,000)=900+4,000=4,900

Thus, the average spending is $4,900.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 6, Problem 1E

To determine

Determine the average spending.

Expert Solution & Answer

Explanation of Solution

The average spending of high-risk patients is $40,000, low-risk patients is $1,000, and the overall low-risk patients is 90%.

Therefore, the average spending for this population can be calculated as follows:

Average spending=(% of low risk patients×Average spendinglow risk)+(% of high risk patients×Average spendinghigh risk)=(0.90×1,000)+(0.10×40,000)=900+4,000=4,900

Thus, the average spending is $4,900.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 6, Problem 1E

To determine

Determine the average spending.

Expert Solution & Answer

Explanation of Solution

The average spending of high-risk patients is $40,000, low-risk patients is $1,000, and the overall low-risk patients is 90%.

Therefore, the average spending for this population can be calculated as follows:

Average spending=(% of low risk patients×Average spendinglow risk)+(% of high risk patients×Average spendinghigh risk)=(0.90×1,000)+(0.10×40,000)=900+4,000=4,900

Thus, the average spending is $4,900.

Answer 6

Chapter 6, Problem 1E

To determine

Determine the average spending.

Expert Solution & Answer

Explanation of Solution

The average spending of high-risk patients is $40,000, low-risk patients is $1,000, and the overall low-risk patients is 90%.

Therefore, the average spending for this population can be calculated as follows:

Average spending=(% of low risk patients×Average spendinglow risk)+(% of high risk patients×Average spendinghigh risk)=(0.90×1,000)+(0.10×40,000)=900+4,000=4,900

Thus, the average spending is $4,900.

Answer 7

Chapter 6, Problem 1E

To determine

Determine the average spending.

Answer 8

Expert Solution & Answer

Explanation of Solution

The average spending of high-risk patients is $40,000, low-risk patients is $1,000, and the overall low-risk patients is 90%.

Therefore, the average spending for this population can be calculated as follows:

Average spending=(% of low risk patients×Average spendinglow risk)+(% of high risk patients×Average spendinghigh risk)=(0.90×1,000)+(0.10×40,000)=900+4,000=4,900