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6. The Statewide Auto Insurance Company developed the following probability distribution for automobile collision claims paid during the past year: a. b. Payment ($) Probability
6. The Statewide Auto Insurance Company developed the following probability distribution for automobile collision claims paid during the past year: a. b. Payment ($) Probability 0 0.83 500 0.06 1,000 0.05 2,000 0.02 5,000 0.02 8 ,000 0.0 1 10,000 0.01 Set up a table of intervals of random numbers that can be used with a VLOOKUP to generate automobile collision claim payments. Construct a simulation model to estimate the mean and standard deviation of claims payments. How accurate are these estimates? Compare them to the analytical calcu- lation of the mean. p. = x, X P(x = x1) + x2 X P(x = x2) + x\" )
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