Most private health insurance plans have out-of-pocket limits, which limit the total amount an insured individual must pay in any given year. For example, a plan may have a 10% copayment on all medical services and a $5,000 out-of-pocket limit. If an individual insured under that plan incurs $60,000 of medical expenses in one year, the individual will pay 10% of the first $50,000 ($5,000), after which the insurer will pay 100% of expenses. Medicare does not have an out-of-pocket limit. Suppose the government is considering adding an out-of-pocket limit. What are the advantages of doing so

Aeuropean aircraft producer has spent 15 years in developing a new aircraft that would potential threaten long-lasting boeing's dominance (monopoly) in the same class of aircrafts. the new european aircraft gets high marks on all performance measures except noise. because of the noise, the european producers management is concerned that the us government may impose restrictions which would forbid their aircraft to land in some of the american airports. without restrictions the estimated (present discounted) profit would be 125 million usd. with the restrictions the profit would only be 25 million usd. the chances of both outcomes are estimated to be 50-50. management must decide now whether to the cost of redesign program problem and a 60% chance it will fail. should the european aircraft producer start the noise redesign program if they do not have any redesign parts of the aircraft to solve the noise problem. is 25 million usd. there is a 40% chance that redesign will solve the noise additional information than mentioned above? draw the decision tree, indicate probabilities and outcomes of the events * imagine that the company could find out in advance the outcome of the u.s. government's e find the expected value of perfect information about the u.s. government's decision. decision. draw a new decision tree, indicate probabilities and outcomes of the events.