Hi, I am not clear why int he solution its given that X1 = n1Y1/c ? I thought about the problem like this: For year one: Individual claim amt = c (its a constant for all policies) No of policies = n1 (For year 1) Total claim amount = c*n1 Average claim amount per policy = Y1 I got stuck here, I couldn't proceed from here. Can you help me out?
Apologies for the extreme delay. n1Y1 is the total claim amount for all the policies. Since c is the amount of each individual claim, it follows that: n1Y1 / c gives the total number of claims for all the policies.
