(Scenario: Health Costs)Use Scenario: Health Costs

Multiple Choice

(Scenario: Health Costs) Use Scenario: Health Costs.Given the fact that Alan has a 40% chance of developing a health problem,what is the expected value of Alan's health care costs for the coming year? Scenario: Health Costs
Alan is hoping for a healthy year,meaning that he would have zero health costs.Given his habits,there is a 40% chance that Alan will develop a health issue resulting in $50,000 in health costs.Assume these are the only two conditions that could exist for Alan in the coming year.

A) $0
B) $50,000
C) $20,000
D) $16,000