Question

In: Statistics and Probability

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

Solutions

Expert Solution

a)

P(X = 0) = 3C0 * 7C3 / 10C3

= 0.2917

b)

E(X) = n(fraudulent) / total

= 3 / 10

= 0.3


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