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  1. b) What should the company charge as an annual premium in order to achieve an expected profit of $200 per policy. Here we assume profit = annual premium – claim amount.
  2. (c) Assume the company receives a positive claim request from a policy holder. What is the proba- bility this claim request is for $6000 or more? A zero claim amount means no claim was issued. Hint: Think about what is known here.
  3. (d) Assume the company has 3 independent policies. What is the probability all 3 of these policies have some positive claim amount? 

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