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 sample100 of the company's insurance claims.They believe the number of these 100 that are false will yield the information the company desires.
A)binomial distribution.
B)Poisson distribution.
C)Either of the above
D)none of the above.

Question

Quizplus · Accepted Answer

The scenario involves a fixed number of trials (100 insurance claims), each with two possible outcomes (false or not false), and a constant probability of success (the industry proportion for false claims is 3%). These conditions fit the criteria for a binomial distribution.

What Type of Probability Distribution Will the Consulting Firm Most