Past insurance company audits have found that 2 percent of dependents claimed on
ID: 3294444 • Letter: P
Question
Past insurance company audits have found that 2 percent of dependents claimed on an employee’s health insurance actually are ineligible for health benefits. An auditor examines a random sample of 10 claimed dependents.
a. What is the probability that all are eligible?
Past insurance company audits have found that 2 percent of dependents claimed on an employee’s health insurance actually are ineligible for health benefits. An auditor examines a random sample of 10 claimed dependents.
a. What is the probability that all are eligible?
b. What is the probability that at least one is ineligible? (Round your answer to 4 decimal places.)Explanation / Answer
p = Probability that a dependent claimed on an employee’s health insurance is ineligible = 0.02
q = 1 - p = 0.98
n = 10
a) P(all are eligible) = 0.9810 = 0.8171
b) P(at least one is ineligible) = 1 - P(all are eligible)
= 1 - 0.8171
= 0.1829