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Shirhan is an engineer who launched two branches of workshop at Gombak and Petaling Jaya last month. As an owner of the business, he realizes that company's costs may not be high with certainty. The capital for Gombak and Petaling Jaya branches are RM50,000 and RM67,800 respectively. The probability of loss occur for Gombak is 0.07 with cost equal to RM18,500. However, the probability of loss occur for Petaling Jaya is 0.10 with cost of loss equal to RM20,400. Shirhan already review for three different policies and the following is the information for each policy: Based on the information above, calculate and justify the expected wealth of each insurance policy for each assembly units. 1. Darn Berhad has discovered the loss distribution faced by each project as follows: The risk premium for Alam Damai and Mesra Alam are 4.8 percent and 2.8 percent respectively and risk-free rate is 7.2 percent for both projects Additional information: (i) All claim payments will be made at the end of year five for Alam Damai and six years for Mesra Alam. (ii) Marketing expenses are 11.4 percent of the expected claim cost. (iii) Loss adjustment expenses for Alam Damai and Mesra Alam are 24 percent and 26.6 percent of the expected claim cost respectively. (iv) Premium taxes cost are 8.75 percent of expected claim cost. (v) Underwriting costs for Alam Damai and Mesra Alam are 23.3 percent and 19.6 percent of expected claim cost respectively. (vi) Profit loading is 5.5 percent of expected claim cost. (vii) Cost of claim processing is RM123,850 for Alam Damai and RM190,675 for Mesra Alam. Based on the information above, calculate the fair premium for each project. (20 marks) 3. Chithurst Co gained a share exchange listing five years ago. At the time of the listing. members of the family who founded the company owned 75 percent of the shares, but now they only hold just over 50 percent. The companies also has purchased an insurance plan to minimize the financial distress in the following: The companies have historical losses incurred as follows: Determine the expected amount paid by insurer to the companies for each policy. (30 marks) 4. Betty, Carol and Emily decide to pool their losses. The loss distributions faced by them are listed below: Calculate the expected loss and standard deviation for both outcomes without and with the sharing arrangement. (30 marks)