2. [15 points). Suppose Linda purchase insurance that has a value of $5,000 and her premium is 12%. Suppose the administrative cost for each customer is 0.2% of the total value of insurance. Also, assume that the probability of sickness for Linda is 8%. a) b) c) d) e) f) [2 points). How much is the total revenue from the insurance? [4 points). How much is the cost paid out to Linda if she is sick and how much is it if she is well? How much is the total cost? [2 points). How much is the company's profit from this insurance? [3 points). Is 12% premium the competitive market rate of premium? Why or why not? [2 points). If not, how much is the competitive rate of premium? [2 points). How much is the actuarially fair rate of premium