One Hundred Policyholders File Claims with CareFree Insurance

question 19

Multiple Choice

One hundred policyholders file claims with CareFree Insurance.Ten of these claims are fraudulent.Claims manager Earl Evans randomly selects four of the ten claims for thorough investigation.If x represents the number of fraudulent claims in Earl's sample, x has a ___ distribution.

• A)continuous
• B)normal
• C)binomial
• D)hypergeometric
• E)exponential

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Definitions:

Average Cost Formula

An inventory costing method that assigns the average cost of goods available for sale to both ending inventory and cost of goods sold.

Net Realizable Value

The estimated selling price of goods minus the cost of their sale or disposal, essentially the net value obtainable.

Inventory

The goods and materials a business holds for the ultimate purpose of resale, comprising raw materials, work-in-progress products, and finished goods.

Physical Flow

The actual movement of goods through a production process or supply chain.