Home » Sara is temporarily unemployed and without health insurance coverage. She derives utility (U) from her interest income on her savings (Y) according…

# Sara is temporarily unemployed and without health insurance coverage. She derives utility (U) from her interest income on her savings (Y) according…

Sara is temporarily unemployed and without health insurance coverage. She derives utility (U) fromher interest income on her savings (Y) according to the following function:U = 3(Y1/2) + (Y1/4)Sara presently makes about \$40,000 of interest income per year. She realizes that there is about a 3percent probability that she may suffer a heart attack. The cost of treatment will be about \$20,000 if aheart attack occurs.A. Calculate Sara’s expected utility level without any health insurance coverage.B. Calculate Sara’s expected income without any insurance coverage.C. Suppose Sara must pay a premium of \$1,500 for health insurance coverage with ACME insurance.Would she buy the health insurance? Why or why not?D. Suppose now that the government passes a law that allows all people—not just the self-employedor employed—to have their entire insurance premium exempted from taxes. Sara is in the 33 percenttax bracket. Would she buy the health insurance at a premium cost of \$1,500? Why or why not?E. Suppose Sara purchases the health insurance coverage and represents the average subscriber, andher expectations are correct. Calculate the loading fee the insurance company will receive.

Show more

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
• 24/7 support
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
• Expert Proofreading
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

### Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

### Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Order your essay today and save 10% with the coupon code: best10