Given I_{H} = $1,500, I_{S} = $230, and p = 7%, what is the value of E(I)?
$1,411.10
$1,388.90
$1,234
$318.90
none of the above
Given IH=$1500
IS=$230
Probability of being sick=p=7%
Expected value of I=E(I)=p*IS+(1-p)*IH=0.07*230+(1-0.07)*1500=$1411.10
Correct option is
$1411.10
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