Develop a second approach to solving this problem, this time without simulation. Compare the results. How does it affect Brennan’s policy decision using simulation?

To solve this problem, it would be possible to create a model which takes into consideration potential scenarios as well as their costs. Calculating the cost of an insurance policy could be done by considering factors like the likelihood of each possible scenario, expected repair or maintenance costs, and the time it will take to see a return on investment. A trade-off analysis can also be done between initial investments in time and money, versus the potential savings. This information is useful when comparing different options.
Brennan’s policy decisions can be better understood by comparing them with the simulation results. This will help him make informed decisions. Brennan can make better decisions if, for example, certain scenarios are not likely to happen. If they do occur it is probably not worth investing in preparation. It is important to have both the simulated and actual data available in order to make more accurate decisions that will improve overall operations.