Group Project: Academic Insurance Model

Each group acts as an insurance company. You are required to purport an insurance indemnity to our entire current Health Economics class that insures against a student either getting a grade of C or lower (including l turning into F) or traceing from the class towards the end of the semester. If either of those happen to a insurance policy harmoniseer, you are required to pay that policy holder.You are NOT trying to make a profit, scarce what is important is that your group try its very best to avoid making a loss. Assume that there are no other be associated with your business other than paying policy holders who make C or less or withdraw. Four different scenarios are offered below. Heres what you need to tell me for individually (l would too like each group to or aloney present results to rest of class, dont need any more than 3 minutes) What is the premium that students will have to pay for the policy in this scenario?A brief Justification for the premium (a couple of se ntence is good enough. You can give me the math formula you used too but dont JUST give me a math formula ). A final couple of sentence (optional) if you believe that I have given you a mail where it is impossible to avoid making a loss, and why you think that. If you believe this, you may choose not to sell any policies under that scenario. In each 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 amount of $5000. I can give you this information that when I teach the regular 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 mandate on the class, so that once you do offer the policy, every one of the 30 students will be required to buy this policy (but you only want to break even, no profits). What premium will you incriminate?Please note, in all s cenarios 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, one 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 maximum of 40 hours. This is a new scheme, so I cannot tell you how many students have previously