Question

A company is considering two insurance plans with coverage and premiums shown in the table. (For example, this means that $50 buys one unit of plan A, consisting of $10,000 fire and theft insurance and S180,000 of liability insurance.) Answer parts a and b Policy A $10,000 Policy B $15,000 Liability S180,000 $120,000 $50 $40 a. The company needs at least $450,000 fire and theft insurance and at least $5,400,000 liability from these plans. How many units should be purchased from each plan to minimize the cost of the premiums? What is the minimum premium? units of Policy B, for a premium of $ The company should purchaseunits of Policy A and b. Suppose the premium for policy A is reduced to S25. Now how many units should be purchased from each plan to minimize the cost of the premiums? What is the minimum premium? The company should purchaseunits of Policy A andunits of Policy B, for a premium of s

Answer 1

0 Pob 0 1 8 20 C00 0 150 000 OR

18 ー 210-90

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