If the Monte Carlo simulation model is to be used: what can the model tell you about the efficacy and pricing of the insurance contract?

AutoSum Calibri 16 - 2 Wrap Text General Normal Bad * Cut BE Copy Format Painter ED H FH Insert Delete Format Fill - Paste BIU- A Merge & Center - $ - % 4. Neutral Conditional Format as Good Formatting Table Styles Clear Sort & Find & Filter - Select Editing Clipboard Font Alignment Number Cells A1 X Payoffs on the proposed insurance A B D E F G H J K L M N O P 15% p. 1 of the case 1 Payoffs on the proposed insurance 2 BASIX commission 3 Proposed policy 2004 4 Rainfall distributions 5 Phase Mean Comments Exhibit 6 6 1 Standard deviation 115 56 191.1 82.5 209.7 97.7 7 2 8 3 9 10 Premium Exhibit 5 -- proposed policy Exhibit 5 -- proposed policy 11 Phase 12 13 14 125 [RS] Period begins (day Period ends [day: Normal Index [mr Payment/mm [R Trigger for Max (mnr Max Payout [RS] 1 1 35 75 15 20 3000 2. 36 70 110 10 40 2000 3 71 115 75 5 10 1000 Rainfall Rainfall shortfall Payoff 1 0 75 15 16 Policy payoffs 17 Phase 18 19 20 21 Total 22 23 Rainfall shortfall=MAX(Normal Index - Rainfall,0) Payoff = IF(Rainfall