## Decision Analysis Problem

I don't even know how to get started on this problem. Should I start with a payoff table? How would I go about doing that? Thanks.

Tech has three health care plans for its faculty and staff to choose from, as follows:

Plan 1- monthly cost of $32 with a$500 deductible; the participants pay the first $500 of medical costs for the year; the insurer pays 90% of all remaining expenses. Plan 2- monthly cost of$5 but a deductible of $1200 with the insurer paying 90% of medical expenses after the insurer pays the first$1200 in a year.

Plan 3- monthly cost of $24 with no deductible; the participants pay 30% of all expenses with the remainder paid by the insurer. Tracy Mccoy estimates her annual medical expenses are defined by the following probability distribution. Annual Medical Expenses$100 (Probability .15)
$500 (Probability .30)$1500 (Probablity .35)
$3000 (Probability .10)$5000 (Probability .05)
\$10,000 (Probability .05)

Determine which plan Tracy should select