An insurance company suffers a loss of $1000 per accident. Half the population is of high risk type with probability of accident being one, and other half is low risk type with probability of accident being zero. high risk type are willing to buy insurance for $1200,and low risk type are willing to buy for $400.What percentage of the population will buy insurance? a. 0%
b. 50%
c. 75%
d. 100%

You are the manager of a large crude-oil refinery. as part of the refining process, a certain heat exchanger (operated at high temperatures and with abrasive material flowing through it) must be replaced every year. the replacement and downtime cost in the first year is $165 comma 000. this cost is expected to increase due to inflation at a rate of 7% per year for six years (i.e. until the eoy 7), at which time this particular heat exchanger will no longer be needed. if the company's cost of capital is 15% per year, how much could you afford to spend for a higher quality heat exchanger so that these annual replacement and downtime costs could be eliminated?