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A private health care entity charges a group of uninsured patients $5 million for various services and applies implicit price concessions to this portfolio


A private health care entity charges a group of uninsured patients $5 million for various services and applies implicit price concessions to this portfolio of patients. Therefore, the health care entity thinks it has a 50% chance of collecting $1 million, a 30% chance of collecting $700,000, and a 20% chance of collecting $400,000. What amount should the entity report as revenue for these services?

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