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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Give an example of estimators (or estimates) that are (a) unbiased and efficient, (b) unbiased and inefficient, and (c) biased and inefficient.
Suppose the probability of an IRS audit is 1.2 percent for U.S. taxpayers who file form 1040 and who earned $100,000 or more. (a) What are the odds that such a taxpayer will be audited? (Round your answers to the nearest whole number.) Odds that a taxpayer will be audited to (b) What are the odds against such a taxpayer being audited? (Round your answers to the nearest whole number.) Odds against a yaxpayer being audited to
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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
At a particular college 19 percent of the students major in business. All business majors are required to take a statistics course. Of the students not majoring in business, 31 percent of them still have to take a statistics course. What is the probability that a student has to take a statistics course at this particular college? Type your answer as a decimal to 4 decimal places.
Suppose the probability of an IRS audit is 4.0 percent for U.S. taxpayers who file form 1040 and who earned $100,000 or more. ( (b) What are the odds against such a taxpayer being audited? (Round your answers to the nearest whole number.)
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…
Tyson Corp. stock has returns of 3%, 18%, -24%, and 28% for the past four years. Based on this information, what is the 99% probability range for any one given year? Select one: Oa 24.5 to 34.3% O b.-61.7 to 74.2% OC.-8.4 to 11.7% Od.-16.4 to 28.9% e. 39.0 to 51.5%
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?