Solve the problem with the regression model
Solve for the problem #4.
If the basic risk adjustment model were implemented without modification for the 138 potential members, what is the risk POInT will run out of funds? How much more money would need to be collected in premiums to ensure the risk of running out of money is less than 0.5%. What if POInT was willing to accept more risk – how much would need to be collected?
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