Important notes about tomorrow’s Risk Pooling class Problem

In tomorrow’s recorded lecture, there is some discussion of the Risk Pooling Class Problem (located at based on the assigned reading entitled Supply of Insurance. When you watch the video, I highly recommend that you pause at the 34:40 mark and try to complete this class problem on your own before moving on. Right after the 34:40 mark, I spend some time solving the class problem using an Excel spreadsheet. You’ll come away with a much better understanding of the risk pooling concept if you struggle a bit with it first, before viewing my explanation of this problem.

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