5 Given Ih 7 000 Is 1 000 P 10 R 600 If The Insurance Company Is Earning Zero Profit 3279847

5. Given: IH = $7,000 IS = $1,000 p = 10% r = $600 If the insurance company is earning zero profits what is the value of q? What can we say about this policy? (full, fair, partial, unfair) What is the value of E(I)? what is the value of I’S? what is the value of I’H ? Does state independence exist for this policy? In essay question no. 5 assume all that is given except that p is greater than 10%. Is the policy full or partial? discuss the basis of your answer What profits will the insurance company earn? Zero, positive, or negative profits? Discuss the basis of your answer

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