Assume That About 30% of All U

question 32

Multiple Choice

Assume that about 30% of all U.S. adults try to pad their insurance claims. Suppose that you are the director of an insurance adjustment office. Your office has just received 132 insurance claims to be processed in the next few days. What is the probability that from 31 to 47 of the claims have been padded?

• A)0.843
• B)0.891
• C)0.871
• D)0.899
• E)0.911

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Definitions:

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, leading to market stability.

Equilibrium Quantity

The quantity of goods or services supplied that equals the quantity demanded at the market equilibrium price.

Shortage

A situation where the demand for a product exceeds its supply in a market, often leading to increased prices.

Excess Supply

A market condition where the quantity of a good or service supplied exceeds the quantity demanded at a particular price, often leading to price decreases.