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What Type of Probability Distribution Will the Consulting Firm Most

question 191

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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.


Definitions:

Practicality

The aspect of being concerned with the actual doing or use of something rather than with theory and ideas.

Empirical Approach

A method of gaining knowledge through direct observation, experience, or experimentation, emphasizing evidence-based conclusions.

Humanistic Psychology

A psychological perspective that emphasizes the study of the whole person and inner feelings to understand behavior.

Structuralism

An early school of thought promoted by Wundt and Titchener; used introspection to reveal the structure of the human mind.

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