Olivia used her past health history and Information about her doctor visits to create this table to compare health costs with and without Insurance
Description of Service
Probability of Needing
the Service
Cost with Insurance
Plan
Cost without Insurance
Plan
100%
$1,580
$0
annual premium
three doctor visits
medication
32%
$75
$1,050
45%
$72
$225
What is the expected value of each option?
The expected value of health care without insurance is $
The expected value of health care with insurance is $