Question 2 [3]: Suppose the population is comprised of 3 types of people with the following health care spending habits: Group Number Health Care Spending 1,000 500 1,000 1,000 5,000 10,000 Part A:...

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Extracted text: Question 2 [3]: Suppose the population is comprised of 3 types of people with the following health care spending habits: Group Number Health Care Spending 1,000 500 1,000 1,000 5,000 10,000 Part A: What is the expected health care spending per year for this population? Part B: Suppose we introduce a managed care option. Uptake of managed care is given by the table below. What is the average health care spending for people who do not switch to managed care? The number who do switch? Number Not Switching Number Switching to Managed Care Group A. 500 500 Bi 750 250 C 900 100