6. Assume each of the 8 drivers is required to contribute an equal share (equivalent to their share of the expected loss of the UConn Drivers pool) to the 8 person pool to cover losses. a. Would the people in North Campus choose to join the UConn Drivers pool? Why or why not? b. Would the drivers in Alumni Quad want to join the UConn Drivers pool? Why or why not? 7. Assume that each driver were required to contribute an amount proportional to their own expected loss (this means that if the actual losses of UConn Drivers were equal to the UConn Drivers expected loss, then North Campus drivers would contribute an amount equal to the North Campus expected loss and Alumni Quad would make a contribution equal to the Alumni expected loss) a. Would the people in North Campus choose to join the UConn Drivers pool? Why or why not? b. Would the drivers in Alumni Quad want to join the UConn Drivers pool? Why or why not? Extra Credit - 5 Points Gampel Insurance Company offers an insurance policy that the North Campus and Alumni drivers may purchase. There is no loading so the premium is the equal share as in Question 6. Gampel does not have any expenses and does not want to make a profit, just break even for the year. The actual losses for each of North Campus and Alumni Quad come in exactly at the expected loss. No additional calculations are necessary for this question. What will Gampel most likely experience for a financial 6. Assume each of the 8 drivers is required to contribute an equal share (equivalent to their share of the expected loss of the UConn Drivers pool) to the 8 person pool to cover losses. a. Would the people in North Campus choose to join the UConn Drivers pool? Why or why not? b. Would the drivers in Alumni Quad want to join the UConn Drivers pool? Why or why not? 7. Assume that each driver were required to contribute an amount proportional to their own expected loss (this means that if the actual losses of UConn Drivers were equal to the UConn Drivers expected loss, then North Campus drivers would contribute an amount equal to the North Campus expected loss and Alumni Quad would make a contribution equal to the Alumni expected loss) a. Would the people in North Campus choose to join the UConn Drivers pool? Why or why not? b. Would the drivers in Alumni Quad want to join the UConn Drivers pool? Why or why not? Extra Credit - 5 Points Gampel Insurance Company offers an insurance policy that the North Campus and Alumni drivers may purchase. There is no loading so the premium is the equal share as in Question 6. Gampel does not have any expenses and does not want to make a profit, just break even for the year. The actual losses for each of North Campus and Alumni Quad come in exactly at the expected loss. No additional calculations are necessary for this question. What will Gampel most likely experience for a financial
