Number of insuredAnticipated Health Claims/year/person

10$600

10750

10900

101050

101200

101350

101500

101650

102250

104500

Year 2:

The claims experience of the customers is found to be generally consistent with expectations of the insurance company. What would be the premium in the second year? If those customers who had claims in the first year that were less than or equal to thepremium now decide not to continue to buy insurance, how many will continue to be insured in the second year?