One Hundred Policyholders File Claims with CareFree Insurance

question 33

Multiple Choice

One hundred policyholders file claims with CareFree Insurance.Ten of these claims are fraudulent.Claims manager Earl Evans randomly selects four of the one hundred claims for thorough investigation.If x represents the number of fraudulent claims in Earl's sample, x has a _______________.

• A)normal distribution
• B)hypergeometric distribution, but may be approximated by a binomial
• C)binomial distribution, but may be approximated by a normal
• D)binomial distribution, but may be approximated by a Poisson
• E)exponential distribution

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Definitions:

Standard Deduction

A fixed dollar amount that reduces the income on which you are taxed, varying by filing status and adjusted annually for inflation.

Dependent

A person who relies on another, especially a family member, for financial support and qualifies for potential tax benefits.

Part-Time Job

Employment with fewer hours per week than a full-time job, often offering limited benefits and lower wages.

Interest Income

Income earned from deposit accounts, investments, or loans, often subject to taxation at ordinary income tax rates.