From the same Texas Department of Insurance data onclosed claims for medical malpractice liability insurance referredto in Problem 1, we can estimate the number of claims in each yearof injury that will be closed in the next 16 years. We obtain thefollowing data. Here the estimated dollars per claim for each yearhave been adjusted to 2007 dollars to account for inflation, so thevalues are all compatible. Texas was said to have had a “medicalmalpractice liability crisis” starting in about 1998 and continuinguntil the legislature passed tort reforms effective in September2003, which put caps on certain noneconomic damage awards. Duringthis period premiums increased greatly and doctors left high-riskspecialties such as emergency room service and delivering babies,and left high-risk geographical areas as well causing shortages indoctors in certain locations. The data from 1994 until 2001 is thefollowing:

Injury year	Estimated # claims	Estimated $ per claim
1994	1021	$415,326.26
1995	1087	$448,871.57
1996	1184	$477,333.66
1997	1291	$490,215.19
1998	1191	$516,696.63
1999	1098	$587,233.93
2000	1055	$536,983.82
2001	1110	$403,504.39

1. Calculate the mean or average number of claims per yearfor medical malpractice insurance in Texas over the four-yearperiod 1994–1997.
2. Calculate the mean or average number of claims per yearfor medical malpractice insurance in Texas over the four-yearperiod 1998–2001.
3. Calculate the mean or average dollar value per claimper year for medical malpractice insurance in Texas over thefour-year period 1994–1997 (in 2009 dollars).
4. Calculate the mean or average dollar value per claimper year for medical malpractice insurance in Texas over thefour-year period 1998–2001 (in 2009 dollars).
5. Looking at your results from (a) to (e), do you thinkthere is any evidence to support the conclusion that costs wererising for insurers, justifying the rise in premiums?