Business, 07.03.2020 05:17 KenziePaul

Paula earns $40,000 per year and rides her bicycle to work. There is a 1% chance that she will break her leg in the next year and a 99% chance that she won't be hurt at all. Medical bills for a broken leg are estimated at $4,000. If Paula buys full health insurance at an actuarially fair premium, what is the premium she will pay for the next year?

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Paula earns $40,000 per year and rides her bicycle to work. There is a 1% chance that she will break...

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