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Please include a graph A health insurance company charges policyholders a $2500 annual premium for health insurance for hospitalization. The company estimates that each time
Please include a graph
A health insurance company charges policyholders a $2500 annual premium for health insurance for hospitalization. The company estimates that each time a patient is hospitalized costs the company $4200. Furthermore, they have estimated that 86% of patients will not be hospitalized, 8% will be hospitalized once a year, and no one will be hospitalized more than twice.
(a) Find the insurance company's expected profit per policyholder.
(b) What is the expected profit if they enroll 80,000 policyholders?
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