velue 7.50 points Samantha\' t o hospital recovery time tolowing her upcoming su
ID: 1156104 • Letter: V
Question
velue 7.50 points Samantha' t o hospital recovery time tolowing her upcoming surgery is $300 for the first day,$200 for the second,$100 for the third,$50 for the fourth, and nothing for a. f Samantha l uninsured, and the coet of providing a hospitai room s $250 per day, how many days will he stay in the hospital folwing her operation?dayto) b. How many days would Samantha stay i her insurance covered half the cost of each hospital day? c Now suppose that Samantha's insurance stops covering hospital stays and instead reduces the cost of her health insurance by $225 How many days would Samantha stay in the hospital under this new policy? Relative to part b, is Samantha better off under this poliay?(Cck to st day(s) MacBook Air 9Explanation / Answer
1. She will stay for only 1 day since for the second day her willingness to pay is 200$ which is less than 250 .
2. She will stay for 2 days since half of 250 is paid by insurance and her willingness to pay was 200 which is more than half of 250 .
3. She saves 225$ . So she can afford to stay till the 3rd day . Total willingness = 300+200+100 = 600 . Total expense = 250×3 = 750 . Actual payment = 750 - 225 = 525 .
She is better off under this policy .
Insurance company first had to pay 250 ( half for 2 days) . Now is paying 225 . So company is also better off
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