One Hundred Policyholders File Claims with CareFree Insurance

question 33

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 one hundred 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:

Government Proposals

Formal plans or suggestions presented to public authorities aiming to address community needs, implement policies, or secure contracts.

High Risk

Refers to the increased likelihood of a negative outcome, often associated with investments, operations, or decisions.

Influenza Epidemic

A widespread outbreak of influenza (flu) that affects a large proportion of the population in a particular region or country.

Flu Shot

is a vaccine administered to protect individuals against influenza viruses, recommended annually to combat the flu season.