Question
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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