6. Assume p = 0.2, r = $800, q = $2,300, IS = $100, E(I) = $3,000. what is the value of IH ?

6. Assume p = 0.2, r = $800, q = $2,300, IS = $100, E(I) = $3,000.

 what is the value of IH ?

A) $2,980

B)$3,725

C) $1,600

D) $2,925

E) not enough information given

7. Using Question 6 info, How do you describe this insurance? 

A) full insurance

B) partial insurance

C) can be both

D) all of the above

E) not enough info given to derive the answer

9) Based on Question 6 info what are the values of I'S ? ; I'H ?

A) $100; $2980

B) $1,600 ; $3725

C) $460 ; $3,725

D) $1,600 ; $2,925

E) none of the above