Fig12-2 - 8 21,714 $2,714,295 $270.71 $5,878,386 $3,164,091...

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Initial Conditions Assumptions Number of Covered Employees 18,533 Increasing 2% per month Average Claim per Employee $250 Increasing 1% per month Amount Contributed per Employee $125 Constant Number of Employee Avg Claim Total Company Month Employees Contributions per Emp. Claims Cost 1 18,904 $2,362,958 $252.50 $4,773,174 $2,410,217 2 19,282 $2,410,217 $255.03 $4,917,324 $2,507,107 3 19,667 $2,458,421 $257.58 $5,065,827 $2,607,406 4 20,061 $2,507,589 $260.15 $5,218,815 $2,711,226 5 20,462 $2,557,741 $262.75 $5,376,423 $2,818,682 6 20,871 $2,608,896 $265.38 $5,538,791 $2,929,895 7 21,289 $2,661,074 $268.03 $5,706,063 $3,044,989
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Unformatted text preview: 8 21,714 $2,714,295 $270.71 $5,878,386 $3,164,091 9 22,149 $2,768,581 $273.42 $6,055,913 $3,287,332 10 22,592 $2,823,953 $276.16 $6,238,802 $3,414,849 11 23,043 $2,880,432 $278.92 $6,427,214 $3,546,782 12 23,504 $2,938,041 $281.71 $6,621,315 $3,683,275 Total Company Cost $36,125,850 Hungry Dawg Restaurants This model shows a single, unchanging scenario. What is the probability of the total company cost being less than the number shown here (in G23)? What is the probability of the actual cost exceeding, say, $40 million? We can't answer these types of questions with this model....
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  • Spring '09
  • BARRYMITNICK
  • Hungry Dawg Restaurants, Assumptions Increasing Increasing, Covered Employees Average, Initial Conditions Number, Employee Avg Claim
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