Concept explainers
Life Expectancy Versus Health Care Spending One article shows a relationship between per capita health care spending h, in thousands of U.S. dollars per person per year, and life expectancy E, in years. The following formula is adapted from that article:
We should point out that this article includes no justification for the type of model used.
a. Plot the graph E versus h. Include spending levels from $1000 to $9000 per person per year (so a horizontal span of 1 to 9).
b. According to this model, what health care expenditure corresponds to maximum longevity? Round your answer in thousands of dollars per person per year to two decimal places.
c. What optimum life expectancy is given by this model? (For comparison, in 2011, in the United States, per capita health care spending was $8745 and life expectancy was 78.7 years.)
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