One Hundred Policyholders File Claims with CareFree Insurance

question 11

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 ___.

• A)normal distribution
• B)hypergeometric distribution, but may be approximated by a binomial
• C)binomial distribution, but may be approximated by a normal
• D)binomial distribution, but may be approximated by a Poisson
• E)exponential distribution

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Definitions:

Eurodollars

U.S. dollar-denominated deposits held in banks outside the United States, not under the jurisdiction of the Federal Reserve, used in international transactions.

Euroyen

Yen-denominated deposits held in banks outside Japan, or bonds issued in the Tokyo market by non-Japanese entities, typically denominated in yen.

Metals

Solid elements that are hard, shiny, malleable, ductile, and conductive, often used in construction and manufacturing.

Energy Currency

A conceptual term for energy being used as a unit of exchange, potentially analogous to traditional monetary systems.