Question
A company is considering two insurance plans with coverage and premiums shown in the table (for example, this means that $50 buys one unit of
A company is considering two insurance plans with coverage and premiums shown in the table (for example, this means that $50 buys one unit of plan A, consisting of $10000 fire and theft, and $180000 liability).
| Policy A | Policy B | |
| Fire/Theft | $10,000 | $15,000 |
| Liability | $180,000 | $120,000 |
| Premium | $50 | $40 |
The company needs at least $450,000 fire and theft insurance and at least $5,400,000 liability from these plans. How many units should be purchased from each plan to minimize the cost of the premiums?
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Business Statistics
Authors: Norean Sharpe, Richard Veaux, Paul Velleman
3rd Edition
978-0321944726, 321925831, 9780321944696, 321944720, 321944690, 978-0321925831
