Table 1: Loss experience of the motor fleet over the last five years Year No. of vehicles Total cost for the year 1 2 3 4 5 20 20 25 30 50 Average loss per No of accidents event R1,500,000 10 R2,200,000 12 R1,750,000 15 R2,000,000 20 R3,500,000 25 R15,000,000 R26,400,000 R26,250,000 R40,000,000 R87,500,000 Table 2: Quotations under consideration for the insurance of the motor fleet Quote Quoted annual premium Annual limit for damage to motor fleet number Deductible 1 2 3 4 5 R15,000,000.00 R10,000,000.00 R8,500,000.00 R6,000,000.00 R5,000,000.00 R60,000,000 R30,000,000 R25,000,000 R20,000,000 R10,000,000 RO R25,000 R50,000 R70,000 R100,000 Question 1 Calculate the optimum deductible according to the total expected cost (TEC) rule Show all calculations. (8 marks) Question 2 Considering the loss history of the company and your answer above, argue which quote is the most appropriate for the company