Question 2 (20 Marks) For medical expenses, the sharing between insured and insurer can formally be described as follows: x= generic expense amount; D=flat deductible; a = proportional deductible; SL = stop-loss; M= amount which depends on D, a, SL; u= out-of-pocket payment; y = reimbursement benefit paid by the insurer. 1. Write the formulas for u and y. Calculate the M. 2. Assume D=200, a=0.5, SL=500, and fill the following table. x u 50 300 800 1000 2000