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:

Homeowners' Policies

Insurance contracts that provide coverage for damage to a homeowner's property, possessions, and liability.

Insurance Salespeople

Professionals who specialize in selling insurance policies, advising clients on risk management, and providing financial planning services.

Ancestral History

The study or account of ancestors and family lineage, often including cultural and social backgrounds.

Fear of Flying

An anxiety disorder characterized by an overwhelming dread of air travel, impacting an individual's ability to fly.