Given: The insurance records are evaluated to build the predicting model for the fraudulent claims. Only 1% is considered as fraudulent on the basis of the historic data. The sample, n, which is applied, is 800. It classifies the values 310 and 270 as frauds and non-frauds, respectively. It misses 90 as frauds, where 130 records are found incorrect which are marked as fraud...

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Answer 1

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Chapter 5, Problem 5P

a.

Explanation of Solution

Given: The insurance records are evaluated to build the predicting model for the fraudulent claims. Only 1% is considered as fraudulent on the basis of the historic data.

The sample, n, which is applied, is 800. It classifies the values 310 and 270 as frauds and non-frauds, respectively. It misses 90 as frauds, where 130 records are found incorrect which are marked as fraud...

b.

Explanation of Solution

Given: The insurance records are evaluated to build the predicting model for the fraudulent claims. Only 1% is considered as fraudulent on the basis of the historic data.

The sample, n, which is applied, is 800. It classifies the values 310 and 270 as frauds and non-frauds, respectively. It misses 90 as frauds, where 130 records are found incorrect which are marked as fraud.

To find:Â The adjusted misclassification from the record of the predicating model.

Solution:

By analyzing the records from the classification matrix,

Predicted records of fraudulent without any record of non-fraudulent=310-90=220...

c.

Explanation of Solution

Given: The insurance records are evaluated to build the predicting model for the fraudulent claims. Only 1% is considered as fraudulent on the basis of the historic data.

The sample, n, which is applied, is 800. It classifies the values 310 and 270 as frauds and non-frauds, respectively. It misses 90 as frauds, where 130 records are found incorrect which are marked as fraud...

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Answer 2

Expert Solution & Answer

Chapter 5, Problem 5P

a.

Explanation of Solution

Given: The insurance records are evaluated to build the predicting model for the fraudulent claims. Only 1% is considered as fraudulent on the basis of the historic data.

The sample, n, which is applied, is 800. It classifies the values 310 and 270 as frauds and non-frauds, respectively. It misses 90 as frauds, where 130 records are found incorrect which are marked as fraud...

b.

Explanation of Solution

Given: The insurance records are evaluated to build the predicting model for the fraudulent claims. Only 1% is considered as fraudulent on the basis of the historic data.

The sample, n, which is applied, is 800. It classifies the values 310 and 270 as frauds and non-frauds, respectively. It misses 90 as frauds, where 130 records are found incorrect which are marked as fraud.

To find:Â The adjusted misclassification from the record of the predicating model.

Solution:

By analyzing the records from the classification matrix,

Predicted records of fraudulent without any record of non-fraudulent=310-90=220...

c.

Explanation of Solution

Given: The insurance records are evaluated to build the predicting model for the fraudulent claims. Only 1% is considered as fraudulent on the basis of the historic data.

The sample, n, which is applied, is 800. It classifies the values 310 and 270 as frauds and non-frauds, respectively. It misses 90 as frauds, where 130 records are found incorrect which are marked as fraud...

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Expert Solution & Answer

Chapter 5, Problem 5P

a.

Explanation of Solution

Given: The insurance records are evaluated to build the predicting model for the fraudulent claims. Only 1% is considered as fraudulent on the basis of the historic data.

The sample, n, which is applied, is 800. It classifies the values 310 and 270 as frauds and non-frauds, respectively. It misses 90 as frauds, where 130 records are found incorrect which are marked as fraud...

b.

Explanation of Solution

Given: The insurance records are evaluated to build the predicting model for the fraudulent claims. Only 1% is considered as fraudulent on the basis of the historic data.

The sample, n, which is applied, is 800. It classifies the values 310 and 270 as frauds and non-frauds, respectively. It misses 90 as frauds, where 130 records are found incorrect which are marked as fraud.

To find:Â The adjusted misclassification from the record of the predicating model.

Solution:

By analyzing the records from the classification matrix,

Predicted records of fraudulent without any record of non-fraudulent=310-90=220...

c.

Explanation of Solution

Given: The insurance records are evaluated to build the predicting model for the fraudulent claims. Only 1% is considered as fraudulent on the basis of the historic data.

The sample, n, which is applied, is 800. It classifies the values 310 and 270 as frauds and non-frauds, respectively. It misses 90 as frauds, where 130 records are found incorrect which are marked as fraud...

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Expert Solution & Answer

Chapter 5, Problem 5P

a.

Explanation of Solution

Given: The insurance records are evaluated to build the predicting model for the fraudulent claims. Only 1% is considered as fraudulent on the basis of the historic data.

The sample, n, which is applied, is 800. It classifies the values 310 and 270 as frauds and non-frauds, respectively. It misses 90 as frauds, where 130 records are found incorrect which are marked as fraud...

b.

Explanation of Solution

Given: The insurance records are evaluated to build the predicting model for the fraudulent claims. Only 1% is considered as fraudulent on the basis of the historic data.

The sample, n, which is applied, is 800. It classifies the values 310 and 270 as frauds and non-frauds, respectively. It misses 90 as frauds, where 130 records are found incorrect which are marked as fraud.

To find:Â The adjusted misclassification from the record of the predicating model.

Solution:

By analyzing the records from the classification matrix,

Predicted records of fraudulent without any record of non-fraudulent=310-90=220...

c.

Explanation of Solution

Given: The insurance records are evaluated to build the predicting model for the fraudulent claims. Only 1% is considered as fraudulent on the basis of the historic data.

The sample, n, which is applied, is 800. It classifies the values 310 and 270 as frauds and non-frauds, respectively. It misses 90 as frauds, where 130 records are found incorrect which are marked as fraud...

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Expert Solution & Answer

Answer 6

Expert Solution & Answer

Answer 7

Chapter 5, Problem 5P

a.

Explanation of Solution

Given: The insurance records are evaluated to build the predicting model for the fraudulent claims. Only 1% is considered as fraudulent on the basis of the historic data.

The sample, n, which is applied, is 800. It classifies the values 310 and 270 as frauds and non-frauds, respectively. It misses 90 as frauds, where 130 records are found incorrect which are marked as fraud...

b.

Explanation of Solution

Given: The insurance records are evaluated to build the predicting model for the fraudulent claims. Only 1% is considered as fraudulent on the basis of the historic data.

The sample, n, which is applied, is 800. It classifies the values 310 and 270 as frauds and non-frauds, respectively. It misses 90 as frauds, where 130 records are found incorrect which are marked as fraud.

To find:Â The adjusted misclassification from the record of the predicating model.

Solution:

By analyzing the records from the classification matrix,

Predicted records of fraudulent without any record of non-fraudulent=310-90=220...

c.

Explanation of Solution

Given: The insurance records are evaluated to build the predicting model for the fraudulent claims. Only 1% is considered as fraudulent on the basis of the historic data.

The sample, n, which is applied, is 800. It classifies the values 310 and 270 as frauds and non-frauds, respectively. It misses 90 as frauds, where 130 records are found incorrect which are marked as fraud...

Answer 8

Chapter 5, Problem 5P

a.

Explanation of Solution

Given: The insurance records are evaluated to build the predicting model for the fraudulent claims. Only 1% is considered as fraudulent on the basis of the historic data.

The sample, n, which is applied, is 800. It classifies the values 310 and 270 as frauds and non-frauds, respectively. It misses 90 as frauds, where 130 records are found incorrect which are marked as fraud...

Answer 9

Chapter 5, Problem 5P

a.

Explanation of Solution

Given: The insurance records are evaluated to build the predicting model for the fraudulent claims. Only 1% is considered as fraudulent on the basis of the historic data.

The sample, n, which is applied, is 800. It classifies the values 310 and 270 as frauds and non-frauds, respectively. It misses 90 as frauds, where 130 records are found incorrect which are marked as fraud...

Answer 10

b.

Explanation of Solution

Given: The insurance records are evaluated to build the predicting model for the fraudulent claims. Only 1% is considered as fraudulent on the basis of the historic data.

The sample, n, which is applied, is 800. It classifies the values 310 and 270 as frauds and non-frauds, respectively. It misses 90 as frauds, where 130 records are found incorrect which are marked as fraud.

To find:Â The adjusted misclassification from the record of the predicating model.

Solution:

By analyzing the records from the classification matrix,

Predicted records of fraudulent without any record of non-fraudulent=310-90=220...

Answer 11

b.

Explanation of Solution

Given: The insurance records are evaluated to build the predicting model for the fraudulent claims. Only 1% is considered as fraudulent on the basis of the historic data.

The sample, n, which is applied, is 800. It classifies the values 310 and 270 as frauds and non-frauds, respectively. It misses 90 as frauds, where 130 records are found incorrect which are marked as fraud.

To find:Â The adjusted misclassification from the record of the predicating model.

Solution:

By analyzing the records from the classification matrix,

Predicted records of fraudulent without any record of non-fraudulent=310-90=220...

Answer 12

c.

Explanation of Solution

Given: The insurance records are evaluated to build the predicting model for the fraudulent claims. Only 1% is considered as fraudulent on the basis of the historic data.

The sample, n, which is applied, is 800. It classifies the values 310 and 270 as frauds and non-frauds, respectively. It misses 90 as frauds, where 130 records are found incorrect which are marked as fraud...

Answer 13

c.

Explanation of Solution

Given: The insurance records are evaluated to build the predicting model for the fraudulent claims. Only 1% is considered as fraudulent on the basis of the historic data.

The sample, n, which is applied, is 800. It classifies the values 310 and 270 as frauds and non-frauds, respectively. It misses 90 as frauds, where 130 records are found incorrect which are marked as fraud...

Answer 14

Expert Solution & Answer

Answer 15

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Answer 16

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Answer 17

Ch. 5 - Prob. 1P Ch. 5 - Prob. 2P Ch. 5 - Prob. 3P Ch. 5 - Consider Figure 5.16, the decile-wise lift chart...Ch. 5 - Prob. 5P Ch. 5 - Prob. 6P Ch. 5 - Prob. 7P

Solution Summary: The author analyzes the classification error rate of the sample where both frauds and non-frauds are present.

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Chapter 5 Solutions