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Demand
Admin cost 400000 Mean
Advt Cost 600000 SD
rand
number
for
trial numb demand demand
1 0.95 60
2 0.896861 55
3 0.281706 40
4 0.543637 50
5 0.074164 40
6 0.617308 50
7 0.426464 45
8 0.151007 40
9 0.54037 50
10 0.576463 50
11 0.157334 40
demand prob cumulativelower limitupper limitdemand
40 0.3 0.3 0 0.3 40
45 0.2 0.5 0.3 0.5 45
50 0.3 0.8 0.5 0.8 50
55 0.15 0.95 0.8 0.95 55
60 0.05 1 0.95 1 60
damage if cumulative lower upper
accident probability probability limit limit damage policy
2000 0.3 0.3 0 0.3 2000 premium
4000 0.2 0.5 0.3 0.5 4000 deductible
8000 0.1 0.6 0.5 0.6 8000
Probability
12000 0.2 0.8 0.6 0.8 12000 of accident
20000 0.2 1 0.8 1 20000
0.3