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Part 1-Automobile Collision Claims (3 points): Excel Tab: State Farm State Farm Insurance has developed the following table to describe the distribution of automobile
Part 1-Automobile Collision Claims (3 points): Excel Tab: State Farm State Farm Insurance has developed the following table to describe the distribution of automobile collision claims paid during the past year. ++ Payments Probability 0 0.83 500 0.06 I 1000 0.05 2000 0.02 5000 0.02 8000 0.01 10000 0.01 I (a) Set up a table of intervals of random numbers that can be used with the Excel VLOOKUP function to generate values for automobile collision claim payments. (1 point) (b) Construct a simulation model to estimate the average claim payment amount and the standard deviation in the claim payment amounts. (2 points)
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