Perform a Sensitivity Analysis on the Optimal Decision and Summarize

question 17

Essay

Perform a sensitivity analysis on the optimal decision and summarize your findings. Vary the probability of being in an accident from 0% to 10%, the insurance premium from $50 to $300, and the deductible amount from $0 to $600. In response to which model inputs is the expected total cost value most sensitive?

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Definitions:

Articular Cartilage

A smooth, white tissue that covers the ends of bones where they come together to form joints, helping reduce friction and absorb shock.

Epiphyses

The rounded end of a long bone, which is separated from the main bone by a growth plate during development and later fuses to allow growth in length.

Bone Movements

The action of bones being moved in relation to each other, primarily through the action of muscles and joints.

Joints

Joints are the areas where two or more bones meet, allowing for movement and providing support to the skeletal structure.