You can use the Poisson distribution to approximate the binomial distribution with mean nP when P is small and n is large, such that nP is of only moderate size (preferably nP ? 7)

____ involve verifying that there is a performance deficiency and determining whether that deficiency should be corrected through training or through some other means (such as transferring the employee).

Fill in the blank(s) with the appropriate word(s).

Which of the following statements about moral hazard is most correct?

A. Moral hazard means those individuals with greater health risk are more likely to purchase health insurance B. Unfortunately, there is nothing that insurers can do to combat the moral hazard problems other than increase premium rates C. Moral hazard is the overuse of healthcare services or forgoing of prevention because the insured individual does not bear the full costs of the consequences D. Under the ACA, health insurers can reduce the moral hazard problem including preexisting condition clauses in insurance contracts E. Businesses that provide health insurance reduce the moral hazard problem by limiting the program to those employees under age 30