2 ) Consider the following scenario Joes initial income Y is $10,000 Joe experiences illness with a probability of 20 Joes total medical costs associated with the illness are $1000 What is the actuarially fair premium 3 )Consider the following scenario Joes initial income Y is $10,000 Joe experiences illness with a probability of 20 Joes total medical costs associated with the illness are $1000 What is the amount of medical coverage he should buy 4 )Consider the following scenario Joes initial income Y is $10,000 Joe experiences illness with a probability of 20 Joes total medical costs associated with the illness are $1000 If Joe must pay a premium of $300 for insurance (i e , 0 coinsurance rate, no deductible), what is the loading fee Note a loading fee is the premium charged by an insurance company to cover its administrative and maintenance costs

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2 ) Consider the following scenario  Joes initial income Y is $10,000  Joe experiences illness with a probability of 20   Joes total medical costs associated with the illness are $1000  What is the actuarially fair premium  3 )Consider the following scenario  Joes initial income Y is $10,000  Joe experiences illness with a probability of 20   Joes total medical costs associated with the illness are $1000  What is the amount of medical coverage he should buy  4 )Consider the following scenario  Joes initial income Y is $10,000  Joe experiences illness with a probability of 20   Joes total medical costs associated with the illness are $1000  If Joe must pay a premium of $300 for insurance (i e , 0  coinsurance rate, no deductible), what is the loading fee  Note  a loading fee is the premium charged by an insurance company to cover its administrative and maintenance costs

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2.) Consider the following scenario: Joes initial income Y is $10,000. Joe experiences illness with a probability of 20%. Joes total medical costs associated with

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