Sheet1

Claims.xls
This example shows how you might model the uncertainty involved in payment of insurance claims. To model this properly,
you must account for the uncertainty in both the total number of claims and the dollar amounts of each claim made.
Cell D12 contains an @RISK distribution function which determines the total number of claims. Each of the cells in the range
D16:AK16 contain another distribution to determine the payment amount for each claim. In each of these cells, an IF statement
is used to compare the "number" of the claim (in the row above) to the total number of claims. Only those claims with numbers
less than or equal to the value in D12 will return a positive value. The others will all return zero. The simulation output in cell D19
is the total payment amount.
Try setting the "Standard Recalc" option on the "Sampling" tab of the @RISK simulation settings dialog to "Monte-Carlo" and then
repeatedly press the recalc key (F9). Watch how the number of non-zero rows and the the total claim amount change.

No. of Claims

#ADDIN?

Claim#
$Amount

1
2
3
#ADDIN? #ADDIN? #ADDIN?

Total Payment Amount

#ADDIN?

Page 1

4
#ADDIN?

5
#ADDIN?

6
#ADDIN?

Sheet1

ells in the range

ls, an IF statement

ims with numbers

on output in cell D19

onte-Carlo" and then

7
8
9
10
11
12
13
14
15
16
#ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN?

Page 2

Sheet1

17
18
19
20
21
22
23
24
25
26
#ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN?

Page 3

Sheet1

27
28
29
30
31
32
33
34
#ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN? #ADDIN?

Page 4