One hundred policyholders file claims with CareFree Insurance.Ten of these claims are fraudulent.Claims manager Earl Evans randomly selects four of the ten claims for thorough investigation.If x represents the number of fraudulent claims in Earl's sample, x has a ___ distribution.
A)continuous
B)normal
C)binomial
D)hypergeometric
E)exponential

Question

Quizplus · Accepted Answer

The distribution is hypergeometric because the sample is drawn without replacement from a finite population, and we are interested in the number of successes (fraudulent claims) in the sample.

One Hundred Policyholders File Claims with CareFree Insurance