Busi. 410 HW 2 Q3

Busi. 410 HW 2 Q3 - 0.62 Minimum 2.44 Maximum 85.09 Mean...

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INPUTS # Minor spil s 3 Loss from minor spil 10 # Major spil s 1 Loss from major spil 50 CALCULATIONS Avg. annual loss from m 30 Avg. annual loss from m 50 PERFORMANCE MEASURES Total annual cost 80 Forecast: Total annual cost Statistic Forecast values Trials 500 Base Case 80 Mean 24.63 Median 21.63 Mode '--- Standard Deviatio 15.38 Variance 236.67 Skewness 0.93 Kurtosis 3.49 Coeff. of Variabili
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Unformatted text preview: 0.62 Minimum 2.44 Maximum 85.09 Mean Std. Error 0.69 a. To be profitable on average they would need to charge $24.63 mil ion per year. b. There is a 15.85% chance that the $40 mil ion would not be enough to cover annual claims. c. They would need $54 mil ion to be 95% certain they could cover annual claims....
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