Case study: credit card insurance profit per customer cost of mailing $0.5, response rate

1%, average balance per month $1000, insurance charges 1% of average balance monthly,

customer claim rate 5% (once insured customer files a claim, the balance will be wiped

and C1 lose $1000). Question: profit per customer, graph claim rate vs response rate,

graph profit vs response rate and find the response rate for maximum profit (r=1%)