Laura is looking for a way to save money this year on her medical expenses. Insurance is starting to get expensive, and her budget is tight. She figures that she has a 75% chance of needing to visit the doctor and get medication once in the winter, for a total of about $400. She also figures there should be some room in the budget for emergencies, so she estimates a 5% chance she will need to spend $300 at an emergency room.
Is it reasonable for Laura to set her medical budget at $300 for the year?
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