Question: use excel function such as vlookup. The Wreck-It-Ralph Auto Insurance Company developed the following probability distribution for automobile collision claims paid during the past year:

use excel function such as vlookup.

The Wreck-It-Ralph Auto Insurance Company developed the following probability distribution for automobile collision claims paid during the past year:

Payment ($)	Probability
0	0.83
500	0.06
1,000	0.05
2,000	0.02
5,000	0.02
8,000	0.01
10,000	0.01

a. Set up intervals of random numbers that can be used to generate automobile collision claim payments.

b. Using the following 20 random numbers, simulate the payments for 20 policyholders. How many claims are paid and what is the total amount paid to the policyholders?

Random numbers:

.6324	.7753	.6582	.8497	.2346
.2731	.4998	.1386	.532	.9955
.1159	.2225	.5847	.0112	.7330
.8191	.8454	.6300	.6246	.3572

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