Question

Bus Econ 3.3.11 Policy A company is considering two insurance plans with coverage and premiumns shown in the table for example, this means that $50 buys one unit of plan A consisting of $10.000 fire and the insurance Fw/theft and $180,000 of liability insurance ) Answer parts a and b Premium Policy $10.000 $180.000 558 520000 who bec o me The company needs at least $450 000 fire and theft insurance and at least 54 800 000 abity from these plans Howany plan to minimize the cost of the premiums? What is the minimum premium? The company should purchase units of Policy A and 22 units of Policy B. for a premium of $1900

Answer 1

Sauna company needs of last $450,000 from and theft insurance & $4800,000 liability forom these plans · 10000m+ 15000 4 2 450000 fire of these por 2x + 3y > 90 0 & fate liability 180007 + 1290000 Y 2 4800000 or 34+242.80 - © . f miniz = 50x+407 i min 2 = soat 401 St. x+34290 34+84280 Denisse Salve by graphical methad. 301412,22), 26-645a , 22434290 3,126.6,0), (0.40),10,30) i parints will be (12-22) Ics Scanned with CamScanner

mum averture at (26.6,8) them z = 50x4404 - 50X96.6 + 46X0 = 1330 of 10,40) them 23' 50X0 + 40x96 = 1600 at (0,30) then 2: 50X0 + 40x30 EU = 1200 at (12,22) them 2 = 50x12 + 40X22 = 600+ 880 =1980 min is. 10.30) & value = 1200 company sould purchase o units to of policy A and 30 units of policy B. for a premium of $1200. Dear student plz ask it any daubt. Thank you. Scanned with CamScanner