HW2 - _ BUSI 410 - Homework #2 Due 2/22/2010 Tips for a...

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_____________________________________________________________________________________________ BUSI 410 - Homework #2 Due 2/22/2010 Tips for a stress-free assignment: (1) In all your simulation experiments, please use 500 trials and initial seed value 410. (Click on the Run Preferences button, then select the Trial tab and the Sampling tab. In the latter check “Use same sequence . . .”) (2) In your submission please include: a) The spreadsheet model, where (i) formulas are shown in the cells that contain formulas (you can do that by pressing <Ctrl>+<~>), and (ii) gridlines and headings are shown (Page Layout->Print Gridlines, Page Layout->Print Headings). b) The frequency chart of the simulation output. c) The statistics of the simulation output. (These latter two can be obtained on a single sheet by requesting a Forecast Report and printing the second page, as you did for Lab Assignment 2.) 1. Vinton Auto Insurance is trying to decide how much money to keep in its checking accounts to cover insurance claims. In the past, the company held some of the premiums it received in interest- bearing checking accounts and put the rest into investments that are not quite as liquid, but tend to generate a higher investment return. The company wants to study cash flows to determine how much money it should keep in its checking accounts to pay claims. After reviewing historical data, the company determined that the average repair bill per claim is normally distributed with a mean of
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HW2 - _ BUSI 410 - Homework #2 Due 2/22/2010 Tips for a...

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