Group Project: Academic Insurance Model

exclusively(prenominal) group acts as an insurance comp whatsoever. You atomic number 18 required to offer an insurance indemnity to our entire current Health economics set up that insures against a student every getting a grade of C or lower (including l turning into F) or withdrawing from the set towards the end of the semester. If either of those happen to a indemnity holder, you are required to fee that policy holder.You are NOT laborious to make a profit, but what is key is that your group try its very silk hat to avoid devising a loss. select that there are no other costs associated with your business other than salaried policy holders who make C or slight(prenominal)(prenominal) or withdraw. Four different scenarios are offered below. Heres what you need to tell me for each (l would as well as like each group to by word of mouth present results to rest of class, dont need any more than 3 minutes) What is the subsidy that students exit have to ante up for the policy in this scenario?A brief Justification for the reward (a couple of sentence is good enough. You house distribute me the math formula you utilise too but dont JUST give me a math formula ). A final couple of sentence (optional) if you study that I have given you a situation where it is impossible to avoid making a loss, and why you think that. If you deliberate this, you may choose not to deal out any policies under that scenario. In all cases, there are a primitive of 30 students who are your potential customers I. E. indemnity policy vitiateers.Scenario l You will be paying students who make C or less or withdraw the amount of $5000. I good deal give you this information that when I teach the regular Masters level chance variable of the class, approximately of all students make C or less, Incomplete that becomes F, or withdraw. Also, I will impose an individual regulation on the class, so that once you do offer the policy, every one of the 30 students wi ll be required to buy this policy (but you only want to uncover even, no profits). What premium will you shudder?Please note, in all scenarios you can only hare ONE premium to all customers, no variations allowed. Scenario II all(prenominal) conditions in the above scenario hold ( of students, what you pay for C or less or withdraw, the individual mandate). However, one more social function is added. Students who get C or less or withdraw can then(prenominal) get tutoring to prepare them for retaking the class later. The tutoring costs $16 an hour, and the insurance policy now also has to pay 50% of each hour of tutoring (I. E. $8 per hour) up to a maximum of 40 hours. This is a new scheme, so I cannot tell you how many students have previously