The purpose of the assignment is to understand how health insurance markets work. That is, the goal is for you to understand how premiums are determined, how a co-payment or a deductible impacts the premium, and what happens to premiums when you have a high risk group (such as people with pre-existing health conditions) and insurance companies can't charge different premiums. You are working for a health insurance company. For the 2000 people you insure, the amount they see the doctor in a year are: Meaning that of the 2000 people who you insure, 750 of them will never go to the doctor, 600 will go 1 time, 590 will go 4 times, and 60 people will go 10 times. 1. Using these figures, figure out the 'fair premium' if there is: a) No co-payment or deductible and the fee is $150 per visit b) No co-payment or deductible and the fee is $200 per visit c) A co-payment of $10 and the fee is $200 per visit d) A co-payment of $50 and the fee is $200 per visit e) Annual deductible of $250 and the fee is $200 per visit 2. Now supposed there are two types of people - those without a chronic condition and those with a chronic condition. And suppose that those with a chronic condition use healthcare more than those without