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An Insurance Company Receives 40 Claims in a Certain Month

Question 109

Multiple Choice

An insurance company receives 40 claims in a certain month. Company policy mandates that a random selection of 5 of these claims be thoroughly investigated. If 3 of the 40 claims are fraudulent, find the probability that none of the fraudulent claims are thoroughly investigated. Round your answer to three decimal places. ​


A) 0.025
B) 0.001
C) 0.662
D) 0.493

Correct Answer:

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