Question

Medical billing errors and fraud are common in the U.S. Research by a major accounting firm found that 30 out of 100 medical bills contain errors. A sample of 10 medical bills is selected. -

What type of probability distribution does the number of medical bills that contain errors follow?

Answer 1

The number of medical bills that contain errors follows a binomial distribution.

Step-by-step explanation:

The number of medical bills that contain errors follows a binomial distribution.

In this case, we have a fixed number of medical bills (10) and each bill can either contain an error or not. The probability of a medical bill containing an error is given as 30 out of 100, which is 0.3.

Since the number of errors in each bill is independent and the probability of success (error) remains constant, we can use the binomial distribution to model the number of medical bills that contain errors.