The employees of Blue Ocean Enterprises receive health insurance through a group plan issued by BestMed. During the past year, 20 percent of the employees did not file any health insurance claims. Of those that did claim from their medical health insurance, 60% filed claims that BestMed classified as small claims and which were uniformly distributed between R5 000 and R50 000. The other 40% filed large claims that were normally distributed with a mean of R100 000 and a standard deviation of R20 000. Based on this experience, BestMed is now is negotiating Blue Oceans premium payment per employee for the upcoming year. You are a management science analyst for BestMed, and you have been assigned the task of estimating the average cost of insurance coverage for Blue Oceans employees. Use the sheet named "BestMed" and build a simulation model to simulate the claim per employee. Replicate 500 times and determine the minimum, maximum and average claim value as well as its standard deviation. Also establish a frequency distribution of the claim values. BestMeds risk is when a specific claim is very large. What is the probability that a claim will exceed R125 000? Blue Ocean has 565 employees who all participate in the health insurance plan. The overheads of administration of the health plan amounts to R1 500 000 annually for BestMed. BestMed would like to earn a 15% return on average on their health plans. What monthly premium per employee should they quote to Blue Ocean Enterprises?