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Identify the Distribution of the given Random Variable
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"A bag contains 5 blue balls and 8 purple balls. If 3 balls are chosen randomly and without replacement, form the bag. Let x be the number of blue balls obtained. Then x has a distribution. (a)... More > Poisson (b) Geometric (c) Normal (d) Binomial (e) Hypergeometic "< Less
Problems of Moral Hazard in Health Insurance
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Studies that identify the effect of a voucher program on the student achievement of those who use vouchers typically do so by comparing the achievement of students who used the voucher to switch to a... More > different school to the achievement of otherwise similar students who wanted to but could not use the voucher to switch to a different school. Will such studies capture the effects of increased competition on the inefficient schools in the voucher-eligible area? Explain.< Less
Calculation of Deadweight Loss in Health Insurance
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Let’s say there’s a world-wide influenza pandemic. Assume that the marginal cost (supply) of influenza vaccinations is constant at \$40. Assume that everyone in society has health... More > insurance that pays 80% of all medical services, including flu shots. Draw a market demand for flu shots and show graphically what the socially optimal number of flu shots is (not considering lives saved). Show how many flu shots will be provided in this market given the insurance. Show the deadweight loss caused by the health insurance.< Less
Problems to Increase Insured People
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"Suppose that in response to learning that some sick individuals were denied health insurance, the government mandates that insurance companies must offer insurance to everyone at unregulated... More > rates. (a) Why might this not help reduce the number of uninsured? Explain. (b) An alternative strategy for reducing the number of uninsured might be to mandate that insurance companies charge individuals with health problems no more than individuals without health problems. Would this help reduce the number of uninsured? Explain. "< Less

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