The following two groups have the following expected claims distributions:

	Kerugian/ Loss	Kebarangkalian kerugian Probability of Loss
Kumpulan / Group A: Ibu-ibu pengendali kilang/ Factory operator mums	RM15,000	.15
	RM7,500	.20
	RM2,000	.25
	RM0	.40
Kumpulan / Group B: Suri rumah / Stay-at-home mums	RM15,000	.06
	RM7,500	.12
	RM2,000	.28
	RM0	.52

1. What are the expected claims costs for group A and group B, respectively?
2. What are the expected average claims cost per policy for a pool in which 50% of the participants have claims distributions identical to group A and 50% have claims distributions identical to group B.
3. If insurers cannot distinguish the high- and low-risk groups, what is the potential problem with charging everyone in the pool a premium equal to the expected average claims costs?