Scenario: You are the employee benefits manager for a mid-sized construction company with 50

employees. You are responsible for working with insurance companies to design a health insurance policy to meet your company’s needs. An analysis of the health risks of your company’s employees indicated that there are two populations of typical individuals: 20­- to 30-year-old workers with no known health issues and 40- to 50-year-old workers with chronic diabetes. Assume that 40% of the employees fall into the second category of workers with chronic diabetes.

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