What Type of Probability Distribution Will the Consulting Firm Most

question 80

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 sample100 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)Either of the above
• D)none of the above.

---

Definitions:

CPI Rose

Refers to an increase in the Consumer Price Index, indicating that the average prices of consumer goods and services have gone up, often a measure of inflation.

$7 Per Hour

A specified wage rate where an individual or worker is paid seven dollars for each hour worked.

Purchasing Power

The economic value of a currency depicted by the number of goods or services obtainable by a single monetary unit.

US$ Per C$

The exchange rate that defines how much one can buy in US dollars (US$) with one Canadian dollar (C$).