Sammy used his past health history and information about his doctor visits to create this table to compare health costs with and without insurance.
Probability of
Needing the
Service
100%
30%
18%
6%
Description of
Service
annual premium
single doctor visit
two doctor visits
medication
What is the expected value of each option?
Cost with
Insurance Plan
$1,580
$25
$50
$24
The expected value of health care without insurance is $
The expected value of health care with insurance is $
Cost Without
Insurance Plan
$0
$350
$700
$75