Question: Solve the problem with THE BIG M METHOD An insurance company is studying the possibility of carrying out a new range of products for the

Solve the problem with THE BIG M METHOD

An insurance company is studying the possibility of carrying out a new range of products for the car industry. This range consists of two products: SegurAuto and AuTotal, for this it has a budget for agents of $1,800,000. The company can choose between two insurance agents to sell its products, the first of which is they charge $ 12,000 for each policy they sell, while the second charges $ 24,000. The probability of not claiming a claim for the SegurAuto product is 32%, while AuTotal is 72%. After a study it has been determined that at least there will be 20 claims of the first product and 12 claims in the second.

Determine the number of policies that must be sold for each product to maximize the probability that no claims will be obtained, taking into account the budget and the number of policies sold.

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