About 40% of all US adults will try to inflate an insurance claim to cover the deductible. Suppose that you work at an insurance company and just received 128 insurance claims. You are interested in the number of inflated claims. Is it fair to say this represents a binomial setting? Explain. Would it be reasonable to use the normal approximation? Explain. What is the probability that more than 80 of the claims are inflated?
About 40% of all US adults will try to inflate an insurance claim to cover the deductible. Suppose that you work at an insurance company and just received 128 insurance claims. You are interested in the number of inflated claims. Is it fair to say this represents a binomial setting? Explain. Would it be reasonable to use the normal approximation? Explain. What is the probability that more than 80 of the claims are inflated?
Chapter8: Sequences, Series,and Probability
Section8.7: Probability
Problem 11ECP: A manufacturer has determined that a machine averages one faulty unit for every 500 it produces....
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