Group Project: Academic Insurance Model

apiece group acts as an damages company. You are required to offer an insurance policy to our entire current Health Economics kinsfolk that insures against a student either getting a grade of C or glower (including l turning into F) or withdrawing from the class towards the end of the semester. If either of those happen to a policy createer, you are required to gestate that policy holder.You are not giveing to make a profit, precisely what is important is that your group try its very best to avoid making a loss. Assume that thither are no other costs associated with your business other than give policy holders who make C or less or withdraw. Four contrastive scenarios are offered below. Heres what you need to tell me for distributively (l would also like each group to orally present results to rest of class, dont need any to a greater extent than 3 minutes) What is the insurance premium that students will have to pay for the policy in this scenario?A brief Justification f or the premium (a couple of sentence is in force(p) enough. You can give me the math formula you used too but dont JUST give me a math formula ). A closing couple of sentence (optional) if you believe that I have given you a situation where it is impossible to avoid making a loss, and why you imagine that. If you believe this, you may choose not to sell any policies below that scenario. In all cases, there are a total of 30 students who are your potential customers I. E. Insurance policy buyers.Scenario l You will be paying students who make C or less or withdraw the follow of $5000. I can give you this information that when I teach the unceasing Masters level version of the class, approximately of all students make C or less, Incomplete that becomes F, or withdraw. Also, I will impose an individual authority on the class, so that once you do offer the policy, every angiotensin-converting enzyme of the 30 students will be required to buy this policy (but you sole(prenomi nal) want to break even, no profits). What premium will you charge? occupy note, in all scenarios you can only hare ONE premium to all customers, no variations allowed. Scenario II All conditions in the above scenario hold ( of students, what you pay for C or less or withdraw, the individual mandate). However, maven more thing is added. Students who get C or less or withdraw can then 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 level best of 40 hours. This is a new scheme, so I cannot tell you how legion(predicate) students have previously