Question
In: Economics
When firms participate in group health insurance for all employees, it: A) raises rates for unhealthy...
When firms participate in group health insurance for all employees, it:
| A) raises rates for unhealthy people. |
| B) prevents unhealthy people from "selecting out," to the detriment of healthy people. |
| C) increases the amount of information available to insurers about the population. |
| D) may lower rates for all people to the extent that it keeps healthy people in the pool. |
| E) raises rates for everyone, because it brings unhealthy people into the pool. |
Solutions
Expert Solution
In a group insurance policy people, no matter if they are healthy or unhealthy is part of the pool. It allows the insurer to pool its resources form a large number of people and lower the rates.
The answer is "May lower rates for all people to the extent that it keeps healthy people in the pool."
Rahul Sunny answered 3 years agoRelated Solutions
The tendency for unhealthy people to seek life insurance rates is an example of: a) fundamental...
The tendency for unhealthy people to seek life insurance rates
is an example of:
a) fundamental risk
b) morale hazard
c) adverse selection
d) moral hazard
A. Let x be the average number of employees in a group health insurance plan, and...
A. Let x be the average number of employees in a group
health insurance plan, and let y be the average
administrative cost as a percentage of claims.
x
3
7
15
33
70
y
40
35
30
27
17
Make a scatter diagram of the data and visualize the line you
think best fits the data.Use a calculator to verify that
Σx = 128, Σx2 = 6272, Σy =
149, Σy2 = 4743, and Σxy = 2896.
Compute r....
Let x be the average number of employees in a group health insurance plan, and let...
Let x be the average number of employees in a group
health insurance plan, and let y be the average
administrative cost as a percentage of claims.
x
3
7
15
32
72
y
40
35
30
27
17
(a) Make a scatter diagram of the data and visualize the line
you think best fits the data.
Submission Data
(b) Would you say the correlation is low, moderate, or strong?
positive or negative?
moderate and negative strong and
negative low...
Let x be the average number of employees in a group health insurance plan, and let...
Let x be the average number of employees in a group
health insurance plan, and let y be the average
administrative cost as a percentage of claims.
x
3
7
15
38
70
y
40
35
30
26
16
(a) Make a scatter diagram of the data and visualize the line
you think best fits the data.
(b) Would you say the correlation is low, moderate, or strong?
positive or negative?
low and positive
moderate and positive
moderate and negative...
Let x be the average number of employees in a group health insurance plan, and let...
Let x be the average number of employees in a group
health insurance plan, and let y be the average
administrative cost as a percentage of claims.
x
3
7
15
30
73
y
40
35
30
27
20
(c) Use a calculator to verify that Σx = 128,
Σx2 = 6512, Σy = 152,
Σy2 = 4854, and Σxy = 3085. Compute
r. (Round your answer to three decimal places.)
r = ???
Let x be the average number of employees in a group health insurance plan, and let...
Let x be the average number of employees in a group
health insurance plan, and let y be the average
administrative cost as a percentage of claims.
x
3
7
15
40
71
y
40
35
30
28
19
(c) Use a calculator to verify that Σx = 136,
Σx2 = 6924, Σy = 152,
Σy2 = 4870, and Σxy = 3284. Compute
r. (Round your answer to three decimal places.)
r =
Let x be the average number of employees in a group health insurance plan, and let...
Let x be the average number of employees in a group
health insurance plan, and let y be the average
administrative cost as a percentage of claims.
x
3
7
15
31
75
y
40
35
30
26
17
(a) Make a scatter diagram of the data and visualize the line
you think best fits the data.
(b) Would you say the correlation is low, moderate, or strong?
positive or negative?
low and positive strong and negative
strong and positive...
Let x be the average number of employees in a group health insurance plan, and let...
Let x be the average number of employees in a group
health insurance plan, and let y be the average
administrative cost as a percentage of claims.
x
3
7
15
38
71
y
40
35
30
26
17
(b) Would you say the correlation is low, moderate, or strong?
positive or negative?
strong and negative
low and positive
moderate and negative
low and negative
strong and positive
moderate and positive
(c) Use a calculator to verify that Σx =...
Let x be the average number of employees in a group health insurance plan, and let...
Let x be the average number of employees in a group health
insurance plan, and let y be the average administrative cost as a
percentage of claims.
x
3
7
15
37
70
y
40
35
30
26
16
(a) Make a scatter diagram of the data and visualize the line
you think best fits the data.
(b) Would you say the correlation is low, moderate, or strong?
positive or negative?
moderate and negative
low and positive
low and negative...
Let x be the average number of employees in a group health insurance plan, and let...
Let x be the average number of employees in a group health
insurance plan, and let y be the average administrative cost as a
percentage of claims. Suppose a random sample of employees gave the
following information. x 2 8 14 32 73 y 50 45 35 28 16 Given that
the value of r is -0.949, should y increase as x increases, does
the value of r imply that y should tend to increase, decrease, or
remain the same?...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Will iron(III) hydroxide precipitate from a pH = 1.00 solution with [Fe3+] = 1.0 x 10-5?...
- What do you believe happens during the final scene of the story between the brothers at....
- A 5.171 g sample of a solid, weak, monoprotic acid is used to make a 100.0...
- 1. Creep is one of deformation that occurred in concrete structure. Give one example that can...
- Why does a particular codon represent only one specific amino acid?
- Write a function template sort that takes two references to generic objects and switches them if...
- What 2 things happen to the melting point of a solid when an impurity is present?
ADVERTISEMENT