Statewide Auto Insurance believes that for every trip longer than 10 minutes that a teenager drives, there

Question:

Statewide Auto Insurance believes that for every trip longer than 10 minutes that a teenager drives, there is a 1 in 1,000 chance that the drive will results in an auto accident. Assume that the cost of an accident can be modeled with a beta with a shape1 (alpha) parameter of 1.5, a shape2 (beta) parameter of 3, a minimum value of $500, and a maximum value of $20,000. Construct a simulation model to answer the following questions.
a. If a teenager drives 500 trips longer than 10 minutes, what is the mean cost resulting from accidents?
b. If a teenager drives 500 trips longer than 10 minutes, what is the probability that the total cost from accidents will exceed $8,000?
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...