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In the next part of the question you will be asked to examine two situations differentiated by the population proportion of low-risk households. The aim

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In the next part of the question you will be asked to examine two situations differentiated by the population proportion of low-risk households. The aim will be to show how a change in the population proportion will change the attractiveness of a pooling contract as compared to the self-separating contracts. Consider two different population proportions of low-risk (A) type, y and w, where 0

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