Exhibit 12.5 The Following Questions Use the Information Below

question 40

Short Answer

Exhibit 12.5
The following questions use the information below.
The owner of Sal's Italian Restaurant wants to study the growth of his business using simulation. He is interested in simulating the number of customers and the amount ordered by customers each month. He currently serves 1000 customers per month and feels this can vary uniformly between a decrease of as much as 5% and an increase of up to 9%. The bill for each customer is a normally distributed random variable with a mean of $20 and a standard deviation of $5. The average order has been increasing steadily over the years and the owner expects the mean order will increase by 2% per month. You have created the following spreadsheet to simulate the problem.
-What gallery distribution should be used for generating the number of times "tails" come up over 15 flips of a "fair" coin?

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Definitions:

Misrepresentation

A false statement of fact made by one party to another, which has the effect of inducing that party into a contract.

Co-insurance Clause

A provision in insurance policies that requires the policyholder to bear a portion of the losses to which the insurance applies.

Fireproof

Designed or made resistant to fire or its effects, reducing the risk of fire damage.

Co-insurance Clause

A provision in insurance policies that requires the policyholder to bear a portion of the costs of a claim, encouraging insured parties to not underinsure their assets.