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 ESQ insurance claims.It is known that the industry proportion for ESQ 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 ESQ will yield the information the company desires.
A)Binomial distribution
B)Poisson distribution
C)Hypergeometric distribution
D)None of the above.

Question

Quizplus · Accepted Answer

The problem involves a fixed sample size (100) with two possible outcomes (ESQ or not-ESQ), and the probability of an ESQ claim is known (3%). These characteristics match the criteria for a binomial distribution. Therefore, the consulting firm is most likely to employ a binomial distribution to analyze the insurance claims.

What Type of Probability Distribution Will the Consulting Firm Most