Fraud detection has become an indispensable tool for banks and credit card companies to combat fraudulent credit card transactions. A fraud detection firm has detected some form of fraudulent activities in 1.31%, and serious fraudulent activities in 0.87%, of transactions. Assume that fraudulent transactions remain stable. a. What is the probability that in a given year, fewer than 2 out of 100 transactions are fraudulent? (Do not round intermediate calculations. Round your final answer to 4 decimal places.) b. What is the probability that in a given year, fewer than 2 out of 100 transactions are seriously fraudulent? (Do not round intermediate calculations. Round your final answer to 4 decimal places.)
Fraud detection has become an indispensable tool for banks and credit card companies to combat fraudulent credit card transactions. A fraud detection firm has detected some form of fraudulent activities in 1.31%, and serious fraudulent activities in 0.87%, of transactions. Assume that fraudulent transactions remain stable.
a. What is the probability that in a given year, fewer than 2 out of 100 transactions are fraudulent? (Do not round intermediate calculations. Round your final answer to 4 decimal places.)
b. What is the probability that in a given year, fewer than 2 out of 100 transactions are seriously fraudulent? (Do not round intermediate calculations. Round your final answer to 4 decimal places.)
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