Decision 1 Data: In this decision you did not know if you were healthy or sick. Of the seventy students who participated, 97.1% chose to buy insurance in Decision #1. Thirty six of the students were sick and of those 36, twenty one of them became ill. All of the ill participants were insured except one.

Decision 2 Data: In this decision every person was assigned a type of either healthy or sick. 33 of the 70 students were healthy and the other 37 were sick. 50 people buy insurance. 19 people become Ill. All 19 people who become Ill have purchased insurance.

Instruction: The questions do not need to be answered mathematically or with a calculation. If you feel the need to use mathematics to make a calculation, then you are free to do so but the questions are merely asking you for a number and how you arrived at that number.

Question 1: If you purchased insurance in decision 1, what would be the maximum number of points you would have paid to purchase insurance? Explain how you arrive at this number.

Question 2: For this question I want you to think of yourself as the insurance company which is selling insurance. If you knew the data from decision 1, what would be the minimum price you would sell insurance at? Explain how you arrive at this number.

Question 3: Again, for this question I want you to think of yourself as the insurance company which is selling insurance. Given the information from decision 2 and assuming that people know if they are sick or healthy, what would be the minimum price you would sell insurance at in this market? Explain how you arrive at this number.