Grade Insurance Pricing Assignment Instruction (15 points) Assuming you would like to offer two Grade Insurance policies with the following deductible and limit combination: Policy A Policy B Deductible Level 12 points 25 points Policy Limit 15 points 15 points Using the Excel spreadsheet provided, answer the following questions. You will need to show your calculations by completing the spreadsheet tables in order to receive credit for this assignment. 1. Complete column F by calculating average loss per person. 2. Complete column H by sorting losses from the smallest to the largest 3. Assume you decide to classify students into four risk categories using the provided risk levels (R1 to R4). Calculate pure premiums per person for each risk category for policies A and B. Make sure you show your calculations in the spreadsheet. 4. Which policy is cheaper? Why? (you can input your answer in the Excel spreadsheet) Deductible = 25 & Policy limit = 15 Risk Level Losses Pure Premium Sorted Loss Risk Level Sorted Insured Loss R1 R2 R3 R4 0-15 15.1-20 20.1-25 >25 Grade Insurance Pricing Assignment Instruction (15 points) Assuming you would like to offer two Grade Insurance policies with the following deductible and limit combination: Policy A Policy B Deductible Level 12 points 25 points Policy Limit 15 points 15 points Using the Excel spreadsheet provided, answer the following questions. You will need to show your calculations by completing the spreadsheet tables in order to receive credit for this assignment. 1. Complete column F by calculating average loss per person. 2. Complete column H by sorting losses from the smallest to the largest 3. Assume you decide to classify students into four risk categories using the provided risk levels (R1 to R4). Calculate pure premiums per person for each risk category for policies A and B. Make sure you show your calculations in the spreadsheet. 4. Which policy is cheaper? Why? (you can input your answer in the Excel spreadsheet) Deductible = 25 & Policy limit = 15 Risk Level Losses Pure Premium Sorted Loss Risk Level Sorted Insured Loss R1 R2 R3 R4 0-15 15.1-20 20.1-25 >25