What Type of Probability Distribution Will the Consulting Firm Most

question 21

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 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.

• A) binomial distribution.
• B) Poisson distribution.
• C) hypergeometric distribution.
• D) none of the above.

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Definitions:

Petty Cash Fund

A small amount of cash kept on hand for making minor, immediate purchases or reimbursements in a business.

Reimbursed

The act of compensating someone for an expense they have incurred, often related to their employment or a specific task they have undertaken.

Deposits In Transit

Refers to funds that have been deposited by a company but not yet recorded by the bank, often leading to a discrepancy in the balancing of accounts.

Deposits In Transit

Deposits in transit are amounts that have been received and recorded by a company, but have not yet been processed or acknowledged by the bank.