An insurance company randomly chooses 24 insurance claims from a box containing 200 insurance claims without...

An insurance company randomly chooses 24 insurance claims from a box containing 200 insurance claims without replacement. There are two distinct categories of insurance claims in the box (25 false claims and 175 others). What type of probability distribution can be used to figure out the chance of the insurance company choosing at least 6 false claims from the box?

Expert Solution

The normal approximation can be used if np≥5 and n(1−p)≥5

n is your sample size,
p is your given probability.
q is just 1 – p.

n =24

p = 25/200 = 0.125

np = 3 <= 5

Hence we can not use normal approximation

And only BimNomial can be used

orchestra answered 2 years ago

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