3) (4 points) Using the data below, do the following: i. Calculate the Loss Ratio for each Risk Class ii. Calculate the overall Loss Ratio across all risks iii. Why is the hit rate and retention so high for Class D? iv. What could the company do to improve its Loss Ratio? Risk Class Number of Exposures Pure Premium Average Premium Hit Rate A 80 20 100 4% B 90 25 100 5% 100 30 100 6% D 1000 110 100 90% Retention 65% 70% 75% 99% 3) (4 points) Using the data below, do the following: i. Calculate the Loss Ratio for each Risk Class ii. Calculate the overall Loss Ratio across all risks iii. Why is the hit rate and retention so high for Class D? iv. What could the company do to improve its Loss Ratio? Risk Class Number of Exposures Pure Premium Average Premium Hit Rate A 80 20 100 4% B 90 25 100 5% 100 30 100 6% D 1000 110 100 90% Retention 65% 70% 75% 99%