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:

National Security Exchange

A regulated marketplace for the trading of securities, such as stocks and bonds, that must adhere to specific government standards for the protection of investors.

Securities Act Of 1933

A U.S. law enacted to ensure transparency and fairness in the securities market, requiring issuers of securities to disclose significant information to investors.

Definition Of Security

A financial instrument that represents an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Resold Without Registration

Referring to the sale of securities without registering them with the required regulatory body, often not in compliance with securities law.