According to recent estimates by the Insurance Corporation of British Columbia (ICBC), 20 percent of all auto insurance claims in BC are fraudulent. Suppose that this estimate is correct, at least 6 claims are fraudulent (ii) at most 3 claims are fraudulent (iii) anywhere between 5 and 8 (inclusive) claims are fraudulent (iv) at least 1 claim is fraudulent
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
According to recent estimates by the Insurance Corporation of British Columbia
(ICBC), 20 percent of all auto insurance claims in BC are fraudulent. Suppose that this
estimate is correct,
at least 6 claims are fraudulent
(ii) at most 3 claims are fraudulent
(iii) anywhere between 5 and 8 (inclusive) claims are fraudulent
(iv) at least 1 claim is fraudulent
(b) If 15 auto insurance are taken at random, what is the probability that
between 2 and 6 claims (inclusive) are fraudulent (binomial distribution)
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