An insurance company states that 15% of all fire insurance claims are fraudulent. Suppose the company is correct, and that it receives 130 claims.

What's the probability that at least 15 claims are fraudulent?
What's the probability that less than 10 claims are fraudulent?

Expert Solution

orchestra answered 2 years ago

Ten policyholders file insurance claims. Three of these claims are fraudulent. Three of the ten claims...

Ten policyholders file insurance claims. Three of these claims are fraudulent. Three of the ten claims are randomly selected for thorough investigation. If X represents the number of fraudulent claims in the sample, P(X = 0) is _______________. a. 0.7083 b. 0.2917 c. 0.0083 d. 0.3622 e. 0.5 QUESTION 19 For #18, what is the mean (expected) number of fraudulent claims in the sample? a. 0.3 b. 0 c. 1.5 d. 0.9 e. 3

Beek’s house was destroyed by fire and claims were filed with the insurance company.

Beek’s house was destroyed by fire and claims were filed with the insurance company. The insurance company (insurer) hired James to investigate the fire as it was suspicious about the cause. Subsequently, the insurer denied the claims based on James’s report. Thompson sued the insurer and Cannon. Beek claimed to be a third party beneficiary of the James-insurer contract. Is Beek correct? If so what type of beneficiary is he and why?

An automotive insurance company wants to predict which filed stolen vehicle claims are fraudulent, based on...

An automotive insurance company wants to predict which filed stolen vehicle claims are fraudulent, based on the mean number of claims submitted per year by the policy holder and whether the policy is a new policy, that is, is one year old or less (coded as 1 = yes, 0 = no). Data from a random sample of 98 automotive insurance claims, organized and stored in InsuranceFraud , show that 49 are fraudulent (coded as 1) and 49 are not...

2. Insurance Company An insurance company states that 90% of its claims are settled within 30...

2. Insurance Company An insurance company states that 90% of its claims are settled within 30 days. A consumer group selected a random sample of 75 of the company's claims to test this statement. If the consumer group found that 55 of the claims were settled within 30 days, do they have sufficient reason to support their contention that fewer than 90% of the claims are settled within 30 days? Use 0.05 level of significance. Hint: We are testing for...

Fraudulent claims represent one of the social costs of insurance. Read the following article and explain...

Fraudulent claims represent one of the social costs of insurance. Read the following article and explain the impact of technology on workers compensations fraud. Write at least two paragraphs. ARTICLE: CHICAGO — Fraud involving medical providers and pharmacies is a fast-growing segment of insurance criminal activity that costs insurers and employers billions annually, according to claims experts who say data has been the key in discovery of such schemes. In a packed session, panelists spoke of this growing area of...

1. Suppose that New York fire department receives an average of 12 requests for fire engines...

1. Suppose that New York fire department receives an average of 12 requests for fire engines each hour, and that these requests occur according to a Poisson process. Each request causes a fire engine to be unavailable for an average of 12 minutes. To have at least a 90% chance of being able to respond to a request, how many fire engines should the fire department have? 2. Two one-barber shop sit side by side in New York. Each shop...

The insurance company expects that all claims will double. Whatwill this do the average and...

The insurance company expects that all claims will double. What will this do the average and variance of claims paid?A.The mean will be unchanged, the variance will doubleB.The mean will double, the variance will be unchangedC.The mean will increase four times, the variance will doubleD.The mean will double, the variance will increase four times

An insurance company states that at least 85% of its claims are settled within 30 days.

4) (1 point) An insurance company states that at least 85% of its claims are settled within 30 days. A consumer group selected a random sample of 66 of the company's claims to test this statement. They found that 55 of the claims were settled within 30 days. Does the consumer group have evidence to disbelieve the insurance company's claim? 1. Write the hypotheses to test if the rate of claims settled within 30 days is less than 85%. H0H0:...

(1 point) An insurance company states that at least 86% of its claims are settled within...

(1 point) An insurance company states that at least 86% of its claims are settled within 30 days. A consumer group selected a random sample of 73 of the company's claims to test this statement. They found that 60 of the claims were settled within 30 days. Does the consumer group have evidence to disbelieve the insurance company's claim? 1. Write the hypotheses to test if the rate of claims settled within 30 days is significantly less than 86%. H0H0:...

About 40% of all US adults will try to pad their insurance claims. Suppose that you...

About 40% of all US adults will try to pad their insurance claims. Suppose that you are the director of an insurance adjustment office. Your office has just received 128 insurance claims to be processed int the next few days. What is the probability that - half or more claims have been padded? fewer than 45 of the claims have been padded: From 40 to 64 of the claims have been padded? More than 80 of the claims have not...

Question