What Type of Probability Distribution Will the Consulting Firm Most

question 35

Multiple Choice

What type of probability distribution will the consulting firm most likely employ to analyze the insurance claims in the following problem? An insurance company has called a consulting firm to determine if the company has an unusually high number of false insurance claims. It is known that the industry proportion for false claims is 3%. The consulting firm has decided to randomly and independently sample 100 of the company's insurance claims. They believe the number of these 100 that are false will yield the information the company desires.

• A) binomial distribution
• B) Poisson distribution
• C) hypergeometric distribution
• D) None of the above.

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Definitions:

Indifference Curves

Indifference curves are graphical representations in microeconomics that indicate different combinations of two goods between which a consumer is indifferent, reflecting their preferences and utility.

Right Angles

An angle measuring exactly 90 degrees.

Indifference Curve

A graphical representation showing different combinations of two goods that provide the same level of utility or satisfaction to the consumer.

Upward Sloping

This term describes a curve that increases in height as it moves from left to right, often used in economics to illustrate the relationship between price and quantity supplied.