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Discuss problem related to the city farm insurance

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Reference no: EM131644572

Question: Many people who are involved in a small auto accident do not file a claim because they are afraid their insurance premiums will be raised. Suppose that City Farm Insurance has three rates. If you file a claim, you are moved to the next higher rate. How might you use simulation to determine whether a particular claim should be filed?

Reference no: EM131644572

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