Sony VideoCam Bhd is planning to invent in the new design of camrecorder. The following distribution for its annual possible losses if Sony 1.5mm Cam and Sony 400mic Vid been implemented: Sony VideoCam Models Sony 1.5mm Cam Sony 400mic Vid Additional information: (0) (iii) (vi) (vii) Probability 0.52 0.31 0.17 0.45 0.46 0.09 Based on the information: i. Possible Losses RMO RM7,300 RM14,500 RM500 RM8,200 RM11,400 All claim payments will be made at the end of year five. Cost of claim processing is RM625. Underwriting costs are 19 percent of pure premium. Loss adjustment expenses are 22 percent of the expected claim cost. Marketing cost are 3 percent of the expected claim cost. Fair profit loading is 3.5 percent of pure premium. Interest rate is 8.5 percent. Calculate fair premium for Sony 1.5mm Cam and Sony 400mic Vid. Suggest to Sony VideoCam Bhd the preferable model to be chosen.