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Rembolse Insurance sold

by sanju09 » Sat Mar 17, 2012 2:14 am
In 2001, Rembolse Insurance sold 8,250 travel insurance policies in its international division. If 255 of the international division's policies resulted in a claim, what was the claim rate, i.e. the number of claims per 100 policies, for the domestic division in 2001?
I. In 2001, the overall claim rate for the international and domestic divisions combined was 4.5 claims per 100 policies.
II. In 2001, the domestic division sold 4,550 policies.



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by killer1387 » Sat Mar 17, 2012 3:12 am
getting E
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by [email protected] » Sat Mar 17, 2012 5:02 am
In 2001, Rembolse Insurance sold 8,250 travel insurance policies in its international division. If 255 of the international division's policies resulted in a claim, what was the claim rate, i.e. the number of claims per 100 policies, for the domestic division in 2001?
I. In 2001, the overall claim rate for the international and domestic divisions combined was 4.5 claims per 100 policies.
II. In 2001, the domestic division sold 4,550 policies.


Getting the answer as C.

I will try to explain...

Statement 1: Let the DOMESTIC claims be x and the total DOMESTIC policies sold be y.

According to statement 1: the equation is:


[International claims + x]/ [International policies sold + y] = 4.5

that is, [255 + x]/[8250/y] = 4.5...

Cannot find the answer as two unknowns... Hence not sufficient...


Statement 2: only gives the value of y i.e 4550 so that will give the total number of policies sold for both the entire insurance company i.e including both the divisions....
nothing else given....

Hence insufficient again...

Combined 1 and 2: y given and the equation given in 1 will help to find out x.

what we want is x/y and we will get that...

Hence the answer is C...


Hope this post really helps for a better understanding....
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by Neo Anderson » Sat Mar 17, 2012 10:10 am
imo c

statement 1: weighted average is given as 4.5 individual average A1 (= (255/8450)*100) is given and A2 needs to be found out! averages can be found out easily using allegation method, but unless until the weights are given its not possible. Also weight for A1 is 8450, however weight for A2 is not given insufficient

statement 2: gives the weight for A2 hence insufficient alone

but both together sufficient hence C
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