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:

Racial Segregation

Is the systematic separation of people into racial or ethnic groups in daily life.

Plessy v. Ferguson

The 1896 Supreme Court decision that upheld the constitutionality of racial segregation under the “separate but equal” doctrine.

Racial Segregation

The enforced separation of different racial groups within a country, community, or establishment, often resulting in discriminatory practices.

Civil War Amendments

Refers to the 13th, 14th, and 15th amendments to the United States Constitution, which abolished slavery, granted citizenship rights, and protected voting rights regardless of race, respectively.