A managed care organization’s (MCO) marketing manager reduced the MCO’s premium by 10 percent and saw a 20 percent increase in the number of subscribers. He then thought that if the premium were reduced by another 20 percent, he would see a 40 percent increase. What is your analysis of this reasoning?

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  1. A managed care organization’s (MCO) marketing manager reduced the MCO’s premium by 10 percent and saw a 20 percent increase in the number of subscribers. He then thought that if the premium were reduced by another 20 percent, he would see a 40 percent increase. What is your analysis of this reasoning?

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