The cost of health insurance is $1,200 per year. The cost of an operation for a dramatic injury is $500,000. The chances of someone needing such an operation are 47.3% over a twenty year period. From a purely financial point of view, are you better off taking out the insurance or not? Choose the best answer.Question options: No. The insurance company must make a profit.Yes. The cost of the insurance is less than the probability cost of the operationNo. The probality of needing the operation is less than 50%.Yes. Buying insurance is always a good idea.

Answer:yes. The cost of the insurance is less than the probability cost of the operationStep-by-step explanation:yes. The cost of the insurance is less than the probability cost of the operationThe cost of health insurance = $1200Cost of dramatic injury operation= $500,000chances of need of operation= 47.3% over a 20 years periodthe amount of pay insurance after 20 years= [tex]20\times 1200= 240,00[/tex]probable  of cost operation= 0.473*500,00= $236,500clearly the cost of insurance is less than the probable  cost of operation.