There's a 25% chance he spends $1,000. So plus.25 times 1,000. There's a 20% chance plus.2. He's not going to spend 4,000 here. He's going to have to spend the first 2,500. So it's a 20% chance he spends 2,500. So times 2,500, insurance company will pay the next 1,500, plus another 20% chance.