An insurer sells a very large number of policies to people with the following loss distribution: $100,000 with probability 0.005 $60,000 with probability 0.010 Loss =$20,000 with probability 0.020 $10,000 with probability 0.05 $0 with probability 0.915 a. Calculate the expected claim cost per policy. b. Assume claims are paid one year after premiums are received and that the interest rate is 6 percent. Calculate the discounted expected claim cost per policy. c. Assume that the only administrative cost is the cost of processing an application, which equals $100 per policy, and that the fair profit loading is $50. What is the fair premium