Consider the pricing of a group travel insurance. Using the baseline model, an insurance company predicts that each individual in a typical group on average makes a claim of 50 with a variance of 875. A particular group has applied for renewal of their policy and you are tasked to update their premium. (1.) For the last 3 years, this policy has the following record: 80 people were insured with the average claim of 114.4359 in the first year; an average claim of 84.77064 is recorded for 75 participants; and 60 people joined the policy with an average claim of 81.72061 in the third year. Counting 1 person in 1 year as 1 observation and assume that this group has the variance of 13565.5 , how many observations are required before we can assign full credibility to historical data. Assume the r=0.05 and p=0.95. (3 pts) (2.) Based on the square root scheme to assign partial credibility, determine the claim estimate for pricing for the next year. (4 pts)