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You are investigating insurance fraud that manifests itself through claimants who file claims with respect to auto accidents with which they were not involved. Your evidence consists of a distribution of the observed number of claimants per accident and a standard distribution for accidents on which fraud is known to be absent. The two distributions are summarized below: Number of Claimants Observed Number of Standard Probability per Accident Accidents 1 0.25 235 2 .35 335 3 .24 250 4 .11 111 5 .04 47 22 1000 6+ .01 Total 1.00 Determine the result of a chi-square test of the null hypothesis that there is no fraud in the observed accidents.

You are investigating insurance fraud that manifests itself through claimants who file claims with respect to auto accidents with which they were not involved. Your evidence consists of a distribution of the observed number of claimants per accident and a standard distribution for accidents on which fraud is known to be absent. The two distributions are summarized below: Number of Claimants Observed Number of Standard Probability per Accident Accidents 1 0.25 235 2 .35 335 3 .24 250 4 .11 111 5 .04 47 22 1000 6+ .01 Total 1.00 Determine the result of a chi-square test of the null hypothesis that there is no fraud in the observed accidents.

A First Course in Probability (10th Edition)
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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U.U.S.Stat-T01-P120.

You are investigating insurance fraud that manifests itself through claimants who file claims with respect to auto accidents with which they were not involved. Your evidence consists of a distribution of the observed number of claimants per accident and a standard distribution for accidents on which fraud is known to be absent. The two distributions are summarized below: Number of Claimants Observed Number of Standard Probability per Accident 1 Accidents 0.25 235 2 .35 335 3 .24 250 4 .11 111 5 .04 47 6+ .01 22 Total 1.00 1000 Determine the result of a chi-square test of the null hypothesis that there is no fraud in the observed accidents.
Transcribed Image Text:You are investigating insurance fraud that manifests itself through claimants who file claims with respect to auto accidents with which they were not involved. Your evidence consists of a distribution of the observed number of claimants per accident and a standard distribution for accidents on which fraud is known to be absent. The two distributions are summarized below: Number of Claimants Observed Number of Standard Probability per Accident 1 Accidents 0.25 235 2 .35 335 3 .24 250 4 .11 111 5 .04 47 6+ .01 22 Total 1.00 1000 Determine the result of a chi-square test of the null hypothesis that there is no fraud in the observed accidents.
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