Probability distribution-analyze the insurance claims

Reference no: EM13311001

What type of probability distribution will the consulting firm most likely employ to analyze the insurance claims in the following problem?

An insurance company has called a consulting firm to determine if the company has an unusually high number of false insurance claims. It is known that the industry proportion for false claims is 3%. The consulting firm has decided to randomly and independently sample 100 of the company's insurance claims. They believe the number of these 100 that are false will yield the information the company desires.

Answer

binomial distribution

Poisson distribution

All of these

None of these

Reference no: EM13311001

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