What was your forecast of emergency department spending in exercise 18.7? Your forecast should equal the probability of one emergency department visit times the typical charge plus the probability of two visits times the typical charge.

Exercise 18.7

How likely is someone aged 25 to 44 to have an emergency department visit? What is the probability of having two visits? What is a typical charge for an emergency department visit? On the basis of your answers, would someone aged 25 to 44 be willing to buy coverage for emergency department care (with a $50 copayment) if it cost $250 per year?