Please explain in detail not just write the answer, thank you!

Question 1: (5.0 points) Consider the following information for a ratemaking indication: - Assume there is no CAT risk for this line of business. - Fixed expense per Exposure =$50 - Variable Expense Ratio =16% - Target UW Profit Margin = 3\% - All policies are annual - Rates are to be in effect for one year - The new rates are planned to be effective on January 1, 2023 A) (1.75 points) Select a loss trend based on the historical data. B) (0.5 points) Explain and justify your loss trend selection. C) (1.75 points) Recommend a pure premium for the future period. The selected pure premium should be trended to the period the rates will be in effect, and developed to ultimate. D) (0.5 points) Explain and justify your pure premium selection. E) ( 0.5 points) Select an indicated rate for the book of business