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For the population as a whole average healthcare spending

For the population as a whole, average healthcare spending is $1,190 per year. Those with a family history of cancer (5 percent of the population) spend $20,000 on average, and those with no family history (95 percent of the population) spend $200. An insurer is offering first-dollar coverage $1,200.

a. You are not risk averse and do not have a family history of cancer. Do you buy coverage?

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Business Management: For the population as a whole average healthcare spending

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