At a financial institution, a fraud detection system identifies suspicious transactions and sends t…

At a financial institution, a fraud detection system identifies suspicious transactions and sends them to a specialist for review. The specialist reviews the transaction, the customer profile, and past history. If there is sufficient evidence of fraud, the transaction is blocked. Based on past history, the specialist blocks 45 percent of the suspicious transactions. Assume a suspicious transaction is independent of other suspicious transactions. (a) Consider a batch of 20 randomly selected suspicious transactions. Suppose the specialist wants to know the probability that exactly 8 of the transactions will be blocked. Show your work. (b) Suppose the specialist wants to know the number of suspicious transactions that will need to be reviewed until reaching the first transaction that will be blocked. How many transactions should the specialist expect to have to do before this happens? Show your work. (c) What is the probability it takes her at least 7 transactions before finding one that is blocked? Show your work. (d) Suppose the specialist will review 167 suspicious transactions in one day. Should she be surprised if she blocks less than 60 transactions? Justify your answer.

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Видео At a financial institution, a fraud detection system identifies suspicious transactions and sends t… канала Ellie Clark