Business, 01.11.2019 05:31, kayranicole1

Joe is currently unemployed and without health insurance coverage. he derives utility (u) from his interest income on his savings (y) according to the following function: u = 5(y1/2)joe presently makes about $40,000 of interest income per year. he realizes that there is about a 5 percent probability that he may suffer a heart attack. the cost of treatment will be about $20,000 if a heart attack occurs. calculate joe’s expected utility level without any health insurance coverage.

calculate joe’s expected income without any insurance coverage

suppose joe must pay a premium of $1,500 for health insurance coverage with acme insurance. would he buy the health insurance? why or why not?

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 05:30, huangjianhe135

Excel allows you to take a lot of data and organize it in one document. what are some of the features you can use to clarify, emphasize, and differentiate your data?

Answers: 2

continue

Business, 22.06.2019 19:00, erbs2003

Which of the following would cause a shift to the right of the supply curve for gasoline? i. a large increase in the price of public transportation. ii. a large decrease in the price of automobiles. iii. a large reduction in the costs of producing gasoline

Answers: 1

continue

Business, 22.06.2019 23:30, glissman8459

What is the difference between career options in the law enforcement pathway and career options in the correction services pathway?

Answers: 1

continue

Business, 23.06.2019 04:40, trevorhenyan51

What does bargain in good faith mean?

Answers: 1

continue

Do you know the correct answer?

Joe is currently unemployed and without health insurance coverage. he derives utility (u) from his i...