Fraud detection has become an indispensable tool for banks and credit card companies to combat fraudulent credit card transactions. A frauddetection firm has detected minor fraudulent activities in 1.61% of transactions, and serious fraudulent activities in 0.83% of transactions. Assumethat fraudulent transactions remain stable.a. What is the probability that there are minor fraudulent activities in fewer than 2 out of 100 transactions?Note: Do not round intermediate calculations. Round your final answer to 4 decimal places.Probabilityb. What is the probability that there are serious fraudulent activities in fewer than 2 out of 100 transactions?Note: Do not round intermediate calculations. Round your final answer to 4 decimal places.Probability4

Step 1: For both parts, we can model the situation using the binomial distribution since the number…

Answered: Fraud detection has become an…

Essentials Of Business Analytics

1st Edition

ISBN:9781285187273

Author:Camm, Jeff.

Publisher:Camm, Jeff.

Chapter4: Linear Regression

Section: Chapter Questions

Problem 21P: Consider again the example introduced in Section 4.5 of a credit card company that has a database of...

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Suppose you incorrectly recorded a deposit as $450. The bank discovered the correct amount was $480. The bank will send a debit memo to inform you of the error. (True or False)
please answer all the following and give the complete solutions on how you come up with that .
Identify fraud triangle concepts. BE7.1 (LO 1), C Match each situation with the fraud triangle factor-opportunity, financial pressure, or rationalization-that best describes it a. An employee's monthly credit card payments are nearly 75% of his or her monthly earnings. b. An employee earns minimum wage at a firm that has reported record earnings for each of the last five years. c. An employee has an expensive gambling habit. d. An employee has check-writing and check-signing responsibilities for a small company, as well as reconciling the bank account. Identify internal control objectives.
The bank account of Kendrick Boats has an available balance of $1,215 and a check book balance of $1,422. There are uncollected deposits totaling $740. What is the amount of the disbursement float on this account? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Which of the following is an external threat to revenue security? (select all that apply) 303 Walk-outs or skipping on the check Unsigned credit cards Quick-change artists Bonding
Please answer correctly no. 29 and provide computation. Thank you:)
Case 8 Decide whether each situation is or is not a symptom of revenue fraud. Then explain (1) why the situation isor is not a symptom and (2) if it is a symptom, how itwould be found using computer queries or traditionalmethods. YIN Sales discounts appear too high. YIN Accounts receivable increases as a percentage of revenues. YIN Bad debt allowance increasesby the same percentageas accounts receivable. YIN Increase in sales returns. YIN Large percent of revenues recorded in thefourth quarter. YIN Unexplained reconciling items on the bankstatement.
You have $13,800 on deposit with no outstanding checks or uncleared deposits. Assume you deposit a check for $5,400 . a. Does this create a disbursement float or a collection float? b. What is your available balance? (Do not round Intermediate calculations and round your answer to the nearest whole number, e.g. 32.) c. What is your book balance? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. )
Bank reconciliations are typically prepared for... A. Savings Accounts B. Current Accounts C. Time Deposits D.Credit Accounts The cash ledger showed a balance of P2M, while the bank statement showed a balance of P800,000. What item must be reconciled to balance the cash ledger and bank statement? A. P1.2M deposit in transitB. P1.2M outstanding check C. P1.2M book error D. P1.2M debit memo Which of the following is not a bank reconciling items? A. Deposit in Transit B. Credit Memo C. Bank Error D. Outstanding Checks
Drag the choices below to the following observations, in the course of preparing the Bank Reconciliation using the Adjusted Balance method. Match each item to a choice: Cost of ordered checks automatically debited by the bank Customer's NSF check returned by the bank Deposit of P717,718 erroneously encoded by the bank teller as P717,178 Check encashment for another client, erroneously debited by the bank against our асcount Outstanding checks Interest income Customer's post-dated check erroneously deposited and returned by the bank Bank service fees Customer's payment directly credited to depository bank Deposit in transit Choices: : Deduct from balance per book : Deduct from balance per book : Deduct from balance per book : Not a reconciling item : Add to balance per bank Deduct from balance per book : Add to balance per book Add to balance per bank : Add to balance per book Add to balance per bank : Deduct from balance per bank :::
please answer in details within 30 minutes as to why the option is correct and why other options are wrong.

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