Average spending is $2,560. Those with a family history of cancer (4% of the population) spend $40,000 on average, and those with no family history (96% of the population) spend $1,000. Which of the following statements are true?
You buy insurance because it protects you from the risk of high spending
You buy coverage because your expected loss is larger than the premium
You don't buy coverage because your expected loss is smaller than the premium
You are indifferent because your expected loss is $2,560