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It will cost Camilla $500 to buy health insurance. If she doesn't buy health insurance, there is a 5% chance she will need to get
It will cost Camilla $500 to buy health insurance. If she doesn't buy health insurance, there is a 5% chance she will need to get surgery which will cost her $20,000. Should Camilla buy health insurance? Use 1 to indicate yes and 2 to indicate no. (Hint: calculate the expected value of each alternative.)
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