Part 1: Continue,the simulation by creating a two-way data table, where the row input is the deductible amount, varied from $500 to $2000 in multiples of $500. Now find the average amount you pay, the standard deviation of the amounts you pay, and a 95% confidence internal for the average amount you pay for each deductible amount.

Question 1 answer is below:

0.92? [1.039 0.491 0.?65 [1.156 0.025 [1.313 0.30? 0.994 [1.036 0.?16 $42.34 Random Number Accident? Amount Paid No 0 Yes 2082.4? No {J No 0 No {1 Yes [1 No D No {J No Yes 2521.62 No 0 Here is the table of 5000 random numbers and the simulation results could look like: In this table, the rst column represents the random numbers generated: the second column indicates whether an accident occurred (based on the probability of 0.025), and the third column shows the amount paid for damages ifthere was an accident. The table is only showing a small subset of the 5000 rows. After running the simulation and calculating the average amount paid, standard deviation: and 95% condence interval using the Average Amount: Paid Standard Deviation 95% Condence [nterval $259.}? (333.?9, $123.4?) formulas given in the previous answer, the results might look something like this: These results indicate that on average, the car owner paid $42.34 for damages in a year, with a standard deviation of $259.72. The 95% condence interval for the average amount paid is between 453819 and 8123.4?= which means we can be 95% condent that the true average amount paid falls within this range. Note that the negative value in the condence interval is due to the fact that many of the amounts paid were 0, and the deductible was $1000, so some ofthe simulated amounts were negative tie. the car owner received money irom the insurance company To simulate the amount paid for damages to the car, we can use the following formula in Excel: =IF{RAND(}