Concept explainers
In the following problems, check that it is appropriate to use the normal approximation to the binomial. Then use the
Insurance: Claims Do you try to pad an insurance claim to cover your deductible? About 40% of all U.S. adults will try to pad their insurance claims! (Source: Are You Normal?, by Bernice Kanner, St. Martin’s Press.) Suppose that you are the director of an insurance adjustment office. Your office has just received 128 insurance claims to be processed in the next few days. What is the
- (a) half or more of the claims have been padded?
- (b) fewer than 45 of the claims have been padded?
- (c) from 40 to 64 of the claims have been padded?
- (d) more than 80 of the claims have not been padded?
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