Question

At a small savings and loan company, you have to deal with your customers being victims of identity theft. This happens unpredictably to one of your customers once every 9 weeks; and no incident seems to have any connection to any other incident. a) What is the probability that you will have to deal with no more than 4 incidents of identity theft in the next year (52 weeks)? b) When you have had 12 more incidents of identity theft, your company will send a detective to investigate. What are the expected value and variance of the time (in weeks) until a detective is sent to investigate? c) Use normal approximation to find the probability that the detective will be sent within 2 years.

Answer 1

Answer: At a small savings and loan company, you have to deal with your customers being victims of identity theft. This happens unpredictably to one of your customers once every 9 weeks; and no incident seems to have any connection to any other incident.

Explanation: