Suppose you got a job as a state employee in the Commonwealth of Wonderland. The Commonwealth provides its employees with a variety of health insurance options as job benefits. The following table summarizes premium rates and characteristics for individual (not family) plans. Premium will be deducted from payrolls and exempted from income taxes. Assume that cost-sharing is equal (20%) for all plans. Plans do not cover dental, vision, and hearing services. I his represents what employees pay. \# See details on the difference between UMO & PPO here; 1. Ajay is a 25 -year-old man, risk averse, making $30,000 as annual income, and healthy. He barely used healthcare and spent only $100 out-of-pocket for healthcare without insurance last year. Which plan would be optimal for him? Why? 2. Sam is a 40 -year-old woman, risk averse, making $45,000 as annual income, and having chronic migraine that require medications and regular follow-up with physicians. He spent $2,000 out-of-pocket for healthcare last year even with insurance. Which plan would be optimal for her? Why? 3. If Sam were offered by a private firm in the following year. This opportunity would increase salary rates to $60,000, but insurance benefit is not included. Is taking this opportunity optimal for her? Why? (Suppose that, in the typical individual insurance market, people like Sam have to pay more than $2,000 per month for PPO plans) 4. Jenny is a 55 -year-old woman, risk averse, making $60,000 as annual income, and disabled that require routine checkups with specialists. She visited a variety of specialists for disability-related complications, and spent $4,000 out-ofpocket for healthcare even with insurance last year. Which plan would be optimal for her? Why