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An insurance company has designed its pricing structure to target a particular mix of business, both between classes and across regions, as described below:

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An insurance company has designed its pricing structure to target a particular mix of business, both between classes and across regions, as described below: Expected Proportion of Policies by Type (t) Household Household Country (c) Buildings (1) Contents (2) Car (3) Total England (1) 0.20 0.20 0.10 0.50 Scotland (2) 0.10 0.10 0.05 0.25 Wales (3) 0.06 0.06 0.03 0.15 N. Ireland (4) 0.04 0.04 0.02 0.10 Total 0.40 0.40 0.20 1.00 After a month 1,000 policies have been sold, distributed as follows: Household Household Country (c) Country (c) Buildings (1) Contents (2) Car (3) Total England (1) England (1) 11.03 6.01 0.54 17.58 Scotland (2) Scotland (2) 0.01 0.40 3.03 3.44 Wales (3) Wales (3) 1.13 1.77 3.44 6.34 N. Ireland ( < N. Ireland (4) 0.65 1.28 2.50 4.43 Total Total 12.82 9.46 9.51 31.79 Is the pricing structure bringing in levels of business in line with those required (x0.5% (11) =26.76) ? 26

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