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One Hundred Policyholders File Claims with CareFree Insurance

Question 11

Multiple Choice

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 ___.


A) normal distribution
B) hypergeometric distribution, but may be approximated by a binomial
C) binomial distribution, but may be approximated by a normal
D) binomial distribution, but may be approximated by a Poisson
E) exponential distribution

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