(Scenario: Health Costs)Use Scenario: Health Costs

Multiple Choice

(Scenario: Health Costs) Use Scenario: Health Costs.When Alan's probability of developing a health problem decreases,holding everything else constant,Alan's expected value of health care costs: 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) increases.
B) decreases.
C) stays constant.
D) increases,decreases,or stays constant.