1.Suppose a particular population has two kinds of health risks, high and low. Let the expected annual health care costs for the high risk be $10,000, and for the low risk, half that.If there are twice as many low risk as high risk individuals, and if the one insurer's administrative load is 20%, what would the community rated premium be if everyone is compelled to and able to buy healthinsurance?Note:administrativeload can be construed as the amount that the insurer has in costs to run the plans above and beyond the "health care costs."

a.

$7500

b.

$6000

c.

$12,000

d.

$8000