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expected value

help with question 2 please

Paul has options of geting a low- or high-level deductible bealth iasurance plan - If Paul chooses the low-level deductible plan, he will have to pay the first SSOO of any medical cost. The low deductible plan cost (premium) $9,000 per year. - If Paul chooses the high-level deductible plan, he will have to pay the fint $3,500 of any medical cost. The low deductible plan cost (oremium) \$7,000 per year. To belp himself choose a plea, Paul found some statistics about common bealth problems for people who are comparable to him. Assume that the table below correctly shows the probabilities and total medical costs within 2. (20pt) ) lacluding the cost of ingurance (oremium), what is Paul's expected total cost with the high-level deductible plan? Round your answer to the nearest cent: (Place jour Exeel computations herel) 3. (15 pt) If Pad wants the bert peyoff in the long-run and muat bay one of the two insurance plans, what plan abould he purchase? Low-Level Deductible Plan or High-Level Deductible Plan. If Paul chooses the high-level deductible plan, be will have to pay the first $3500 of ang medical cost. The low deductible plan cost (oreminm) $7000 per year. 4. (15pta) If tomeone chooses the high-level dedvetible plan, what would be hivher rational for this choice (Justify your reasoning behind your choice in no more than 3 -4 sentences)

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