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Use this scenario to answers questions An insurance company wants to examine the frequency of fraudulent claims for its fire and auto policies. A claims

Use this scenario to answers questions

An insurance company wants to examine the frequency of fraudulent claims for its fire and auto policies. A claims manager gathers all fire and auto claims and classifies each one as fraudulent or non-fraudulent.

Category

Fire

Auto

Total

Fraudulent

6

9

15

Non-fraudulent

14

21

35

Total

20

30

50

Question 1

What is the probability that a randomly selected claim is fraudulent and an auto policy? Round to two decimal places.

Question 2

What is the probability that a randomly selected claim is non-fraudulent given it is an fire policy? Round to two decimal places.

Question 3

What is the probability that a randomly selected claim is fraudulent or a fire policy? Round to two decimal places.

Question 4

Based on the information in the table above, are type of policy and category of fraudulence independent of each other? Justify your answer.

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