Consider a simplified example in which all $90,000$ residents in a particular town pay $$100$ a month to the insurance company SecureSure for medical insurance coverage. The insurance company cannot predict whether a given resident will need hospitalization or how much any individual$$s care will cost. Suppose, however, it has data that on average, $10\%$ of the citizens require care each month, costing an average of $$1,200$ each. The expected average cost of monthly care will be $per person. If the insurance company sets the monthly$$equal to this amount, it would break even $($on average$).$