What Type of Probability Distribution Will the Consulting Firm Most

question 1

Multiple Choice

What type of probability distribution will the consulting firm most likely employ to analyse 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:

Logical Operations

Mental processes that follow systematic patterns of thinking, allowing for problem-solving and reasoning based on established rules.

Abstract Thinking

The ability to think about objects, principles, and ideas that are not physically present, involving complex thought processes like analysis and synthesis.

Formal Operations

The final stage in Piaget's theory of cognitive development, characterized by the ability to think abstractly and logically.

Cognitive Development

Cognitive development is the process by which a child's ability to think, reason, and understand the world around them evolves over time.