Question
A company provides health insurance benefits to all its employees through a group plan issued by DP Insurance. During the past year, 40 percent of
A company provides health insurance benefits to all its employees through a group plan issued by DP Insurance. During the past year, 40 percent of the employees did not file any health insurance claims, 40 percent filed only a small claim, and 20 percent filed a large claim. Based on this experience, DP Insurance now is negotiating the corporation's premium payment per employee for the upcoming year. You are an analyst for the DP Insurance, and you have been assigned the task of estimating the sizes of the claims. Use the random numbers 0.4071, 0.5228, 0.8185, 0.5802, and 0.0193 to simulate whether each of five employees files no claim, a small claim, or a large claim. Based on your results, how many Small Claims are in this sample?
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