SOLUTION: from the perspective of insurance company health policies are set up in such a way a healthy person has a negative expected value and a sickly person a positive one. Right or Wron

Question 586054: from the perspective of insurance company health policies are set up in such a way a healthy person has a negative expected value and a sickly person a positive one. Right or Wrong
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
from the perspective of insurance company health policies are set up in such a way a healthy person has a negative expected value and a sickly person a positive one. Right or Wrong
-----
Wrong
For the company the healthy person will pay for insurance
and not have claims resulting in a positive gain for the company.
----
For the company the sickly person will pay for insurance
and will make claims resulting in a loss for the company.
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Cheers,
Stan H.
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