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LSUS MHA 710 EXAM 1 HEALTHCARE ECONOMICS EXAM LATEST 2026 ACTUAL
EXAM WITH COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS
(100% VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR VERIFIED||
||BRANDNEW!!!||
What is a high deductible plan? - ANSWER-Plan that has a
deductible of at least $1,000 and may be combined with a health
savings account.
What is a health savings account? - ANSWER-An account that
employees and employers can contribute to and employees can
use to pay medical bills. Employees' contributions and payments
are not taxable.
Which types of employer-sponsored insurance plans have the
largest shares of the market? See exhibit 3.3. - ANSWER-PPO.
FFS plans have all but disappeared, and the market share of
PPO plans has fallen from 57 percent to 48 percent. HMO
plans (which include POS plans in exhibit 3.3) have fallen
from 34 percent of the employer-based market to 24 percent.
HD plans have risen from 5 percent of the market in 2007 to
28 percent in 2017. The patterns in other sectors differ from
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those in the employer-sponsored market. More than 60
percent of Medicare Advantage beneficiaries are in HMOs
(Kaiser Family Foundation 2017b). Likewise, more than 70
percent of Medicaid beneficiaries are in HMOs, and about
half of those buying ACA plans are as well.
What is the difference between a subjective probability and an
objective probability? Are they equally "reliable"? - ANSWER-
Objective probability is based on factual frequencies while
subjective probability is based on judgement. Subjective
probability is used more but is not as reliable as objective.
What is the formula for calculating an expected value? -
ANSWER-multiply the value of each outcome by its probability of
occurrence and then add the resulting products.
What is the formula for variance in a problem set? - ANSWER-
multiply the squared difference between the value of each
outcome and the expected value by its probability of occurrence
and then add the resulting products.
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Why are both the expected value and variance (and/or standard
deviation) required for evaluating the riskiness of a scenario? -
ANSWER-Range will tell you the best and worst likely case
scenario while the variance will tell you the size of the risk
compared to other outcomes.
What is sensitivity analysis and why is it important? - ANSWER-A
sensitivity analysis substitutes different, but plausible, values for
the values in a decision tree. Gauging the effects of minor data
changes on the results is always helpful. The data are never
perfect, and using them as if they were does not make sense.
You must understand how the decision tree is constructed and
how the expected profit is calculated. - ANSWER-Decision tree is
constructed through showing the probability of a profit for various
outcomes. The expected value is made my summing all the
outcomes after multiplying the profit by the probability.
What is the difference between being risk-averse, risk-neutral,
and risk-loving? - ANSWER-Risk loving is the same as risk
seeking and they like taking chances even with low expected
payoffs as sometimes it is the only way to survive. Risk neutral
LSUS MHA 710 EXAM 1 HEALTHCARE ECONOMICS EXAM LATEST 2026 ACTUAL
EXAM WITH COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS
(100% VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR VERIFIED||
||BRANDNEW!!!||
What is a high deductible plan? - ANSWER-Plan that has a
deductible of at least $1,000 and may be combined with a health
savings account.
What is a health savings account? - ANSWER-An account that
employees and employers can contribute to and employees can
use to pay medical bills. Employees' contributions and payments
are not taxable.
Which types of employer-sponsored insurance plans have the
largest shares of the market? See exhibit 3.3. - ANSWER-PPO.
FFS plans have all but disappeared, and the market share of
PPO plans has fallen from 57 percent to 48 percent. HMO
plans (which include POS plans in exhibit 3.3) have fallen
from 34 percent of the employer-based market to 24 percent.
HD plans have risen from 5 percent of the market in 2007 to
28 percent in 2017. The patterns in other sectors differ from
,2|Page
those in the employer-sponsored market. More than 60
percent of Medicare Advantage beneficiaries are in HMOs
(Kaiser Family Foundation 2017b). Likewise, more than 70
percent of Medicaid beneficiaries are in HMOs, and about
half of those buying ACA plans are as well.
What is the difference between a subjective probability and an
objective probability? Are they equally "reliable"? - ANSWER-
Objective probability is based on factual frequencies while
subjective probability is based on judgement. Subjective
probability is used more but is not as reliable as objective.
What is the formula for calculating an expected value? -
ANSWER-multiply the value of each outcome by its probability of
occurrence and then add the resulting products.
What is the formula for variance in a problem set? - ANSWER-
multiply the squared difference between the value of each
outcome and the expected value by its probability of occurrence
and then add the resulting products.
, 3|Page
Why are both the expected value and variance (and/or standard
deviation) required for evaluating the riskiness of a scenario? -
ANSWER-Range will tell you the best and worst likely case
scenario while the variance will tell you the size of the risk
compared to other outcomes.
What is sensitivity analysis and why is it important? - ANSWER-A
sensitivity analysis substitutes different, but plausible, values for
the values in a decision tree. Gauging the effects of minor data
changes on the results is always helpful. The data are never
perfect, and using them as if they were does not make sense.
You must understand how the decision tree is constructed and
how the expected profit is calculated. - ANSWER-Decision tree is
constructed through showing the probability of a profit for various
outcomes. The expected value is made my summing all the
outcomes after multiplying the profit by the probability.
What is the difference between being risk-averse, risk-neutral,
and risk-loving? - ANSWER-Risk loving is the same as risk
seeking and they like taking chances even with low expected
payoffs as sometimes it is the only way to survive. Risk neutral
