In the following situation, what sort ofprobability distribution would theconsulting business most likely use toassess the insurance claims?A consulting business has been hired byan insurance company to see if thecompany has an exceptionally highnumber of fraudulent insurance claims.The percentage of fraudulent claims in thebusiness is believed to be 3%. Theconsulting firm has chosen to sample 100of the company's insurance claims atrandom and independently. They believethat the number of these 100 that are fakewill provide the firm with the informationit seeks.A) Binomial distributionB) Poisson distributionC) All of the aboveD) None of the abovea. CO b. DC. Ad. B

here given A consulting business has been hired by an insurance company to see if the company has…

Answered: In the following situation, what sort…

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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Your insurance company has a policy to ensure personal property. Assume you have a laptop worth $2,400 and there's a 4% chance that the laptop will be lost or stolen during the next year. What would be a fair premium for the insurance? We are assuming that the insurance company earns no profit
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An insurance company has written 50 policies for $125,000, 100 policies for $30,000, and 250 policies for $10,000 for people of age 20. If experience shows that the probability that a person will die at age 20 is 0.0012, how much can the company expect to pay out during the year the policies were written?
A poker hand consists of five cards randomly dealt from a standard deck of 52 cards. The order of the cards does not matter. Determine the following probabilities for a 5-card poker hand. Write your answers in percent form, rounded to 4 decimal places. Determine the probability that exactly 3 of these cards are Aces. Answer: Determine the probability that all five of these cards are Spades. Answer: Determine the probability that exactly 3 of these cards are face cards. Answer: Determine the probability of selecting exactly 2 Aces and exactly 2 Kings Answer: Determine the probability of selecting exactly 1 Jack. Answer: B
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Chuck works at the BuyMore where people can bring in broken computers. When a customer enters the store there is a good chance he will not be paid anything from helping them. But sometimes there is a chance he will be paid to work on their computer. The probability of each amount from a random customer is given in the following table: Job payment $13 $90 $300 $1,400 Probaiblity 0.39 0.1 0.06 0.01 When the next person walks into the BuyMore, how much money can Chuck expect to get from them on average?Answer to two decimals What is the probability he will get less than $160 from a random customer?Answer to four decimals What is the standard deviation for the payments from the customers?Answer to two decimals What is the median job payment amount?Answer to two decimals
Year 1 Discussion Questions 2. The following is the experience of Insurer A for the last three years: a. What is the frequency of losses in year 1? b. Calculate the probability of a loss in year 1. c. Calculate the mean losses per year for the collision claims and losses. d. Calculate the mean losses per exposure. e. Calculate the mean losses per claim.. f. What is the frequency of the losses? g. What is the severity of the losses? Number of Exposures 10,000 10,000 10,000 Number of Collision Claims 375 030 420 Collision Losses (5) 350,000 250,000 400,000
Virtually any process can be improved by use of statistics, including the law. A much publicized case that involved a debate about probability was the Collins case, which began in 1964. An incident of purse snatching in the Los Angeles area led to the arrest of Michael and Janet Collins. At their trial, an "expert" presented the probabilities listed in table below on characteristics possessed by a couple seen running from the crime scene: Characteristics Probability Man with beard 1/10 Blond woman 1/4 1/10 Yellow car Woman with ponytail Man with moustache Interracial couple 1/10 1/3 1/1000 The chance that a couple had all these characteristics together is 1 in 12 million. Because the Collinses had these characteristics, the Collinses must be guilty. Do yo see any problem with this line of reasoning? Hint: The question of interest is not "what is the probability of finding a couple with these characteristics?" because one such couple has been found (the Collinses), the question is "what…
It is widely known that wage levels and real estate prices follow, i.e. that in areas where salaries are generally high, so are real estate prices and vice versa. The table below shows the distribution of people according to their salary level and the real estate price where they live. a. According to the table, what percentage of people have a high salary level? b.What is the probability that a person with a low salary lives in an area with high real estate prices? c. What is the probability that a person living in an area with high real estate prices has a low salary?
A sample of financial analysts was asked to provide forecasts of earnings per share of a corporation for next year. The results are summarized in the following table: Forecast ($ per share) frequency 9 up to 10 11 10 up to 11 14 11 up to 12 18 12 up to 13 14 13 up to 14 7 What is the probability that the forecast of earnings is between $9 and $10 per share?

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In the following situation, what sort of probability distribution would the consulting business most likely use to assess the insurance claims?