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

Understand the role of fundamental valuation in assessing the timing, amount, and uncertainty of future cash flows.

Understand and calculate budgeted cost of goods sold.

Identify and describe different components of a merchandise purchases budget.

Calculate budgeted material needs and understand raw material inventory management.

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Definitions:

Cluster

A grouping of similar items, individuals, or data points among a set of data.

Standard Error

Standard Error is the standard deviation of the sampling distribution of a statistic, often used to measure the accuracy with which a sample reflects a population.

Sample Size

The number of observations or elements selected from a population to be included in a sample.

Standard Deviation

A measure of the dispersion or variability of a set of data points from their mean, indicating how spread out the data points are.