112. The following appeared in a memo to the Saluda town council from the town’s business manager. “Research indicates that those who exercise regularly are hospitalized less than half as often as those who don’t exercise. By providing a well-equipped gym for Saluda’s municipal employees, we should be able to reduce the cost of our group health insurance coverage by approximately 50% and thereby achieve a balanced town budget.”
1.There is no causal relationship between the development of the employees' health and the provision of a well-equipped gym. 2.Therefore, the reduction of the cost of group health insurance coverage expected by the author is not guaranteed. 3.Even if the provision of the gym can cause a reduction of the cost, no one can rely on it to achieve a balanced town budget since the health incidents occur very randomly. |