You wish to join a tax saving medical-expense insurance scheme that works in the following way. At the beginning of the calendar year, you put money into a medical-expense account. This amount is not subject to tax. As you pay medical expenses during the year, you are reimbursed by the scheme until your account is exhausted. From that point on, you must pay your medical expenses out of your own pocket. On the other hand, if you put more money into the scheme than the medical expenses you end up incurring, this extra money is lost to you. Your annual salary is $50,000 and your income tax rate is 30%. Assume that your medical expenses in a year are normally distributed with a mean = $2000 and a standard deviation = $500 1. Build and run a simulation model to determine to the nearest $250 the approximately optimal amount of money to put into the scheme. Use no less than 500 replications. Write down the approximately optimal amount. 2. For the optimal subscription amount, find the 95% confidence interval of take-home pay (i.e., after paying medical insurance and income tax). You wish to join a tax saving medical-expense insurance scheme that works in the following way. At the beginning of the calendar year, you put money into a medical-expense account. This amount is not subject to tax. As you pay medical expenses during the year, you are reimbursed by the scheme until your account is exhausted. From that point on, you must pay your medical expenses out of your own pocket. On the other hand, if you put more money into the scheme than the medical expenses you end up incurring, this extra money is lost to you. Your annual salary is $50,000 and your income tax rate is 30%. Assume that your medical expenses in a year are normally distributed with a mean = $2000 and a standard deviation = $500 1. Build and run a simulation model to determine to the nearest $250 the approximately optimal amount of money to put into the scheme. Use no less than 500 replications. Write down the approximately optimal amount. 2. For the optimal subscription amount, find the 95% confidence interval of take-home pay (i.e., after paying medical insurance and income tax)