Final answer:
The probability of needing medical service in Sammy's case cannot be determined from the question as it lacks specific data. Insurance companies use risk factors to calculate premiums, differentiating cost based on individual health risks and family history.
Step-by-step explanation:
The question asks whether we can determine the probability of needing a medical service based on Sammy's past health history and information about doctor visits using a table he created. Without the actual data from the table, we cannot accurately calculate the probability. Therefore, the correct answer is 4) Cannot be determined because the necessary information to make a calculation is not provided within the question.
However, for an insurance company, the probability of requiring a medical service is a key factor in determining the cost of premiums. They use actuarial science to calculate fair premiums based on risk factors, such as family medical history and age. The aim is to set premiums that cover the expected costs of claims while also making a profit.
An insurance company may set different rates depending on the individual's risk profile, as seen in the example with the two groups of men with different risks due to a family history of cancer. While insurance can mitigate the financial risk of health costs, it introduces complexities like deductibles, copays, and coinsurance.