Question 3: Probability of
a policy becoming claim policy is 0.2. The claim amount distribution in claim
policies is given below:
10 marks
0.4 probability for clam amount to be in Rs. 10000 to <=
Rs. 30000 range,
0.35 probability for clam amount to be in Rs. 30000 to <=
Rs. 70000 range,
0.25 probability for clam amount to be in Rs. 70000 to <=
Rs. 130000 range,
Design an experiment to conduct Monte Carlo Simulation using
random number range of 0 to 1.
Answer: Watch this video
my answers are wrong.... :-(
ReplyDeleteClaim amount to be generated using random number between 0 and 1 only. if this not done but rest of the things done, marks awarded is 7-9.
ReplyDeleteSome of the students multiplied probability of claim with probability of claim range and planned the simulation with random numbers. This is also OK.
If only claim and no claim part is planned with random number and claim amount range and claim amount not done, the marks awarded is 3-5.
If nothing useful is done but some idea about simulation is shown, the marks awarded is 1-3.