Shiny White dental insurance costs $258 per year. Approximately one-third of insured people need a filling, which averages $110 each. 80% of insured people get a preventive check-up each year, and the average cost of this visit is $95. If you consider Shiny White's income and expenses, what is the expected value of each insured customer?

a. $258

b. $145.70

c. $35.54

d. $53

e. $97

Question

Schnookums

Mathematics

13 February, 08:05

Shiny White dental insurance costs $258 per year. Approximately one-third of insured people need a filling, which averages $110 each. 80% of insured people get a preventive check-up each year, and the average cost of this visit is $95. If you consider Shiny White's income and expenses, what is the expected value of each insured customer?

a. $258

b. $145.70

c. $35.54

d. $53

e. $97

+3

Answers (1)

Know the Answer?

Ruby Thomas · Answer 1

The closest answer would be Letter B - $145.70.

Given: cost - 258; 1/3, 110; 80%, 95

Required: expected value of each insured customer

Solution: (x - per person)

expected value per person = income - expenses

expected value per person = 258x - (1/3 x 110x) - (80% x 95x)

expected value per person = 258x - 36.67x - 76x

expected value per person = 145.33