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Fraud detection A credit card bank is investigating the incidence of fraudulent card

Stats Modeling the World | 4th Edition | ISBN: 9780321854018 | Authors: David E. Bock, Paul F. Velleman, Richard D. De Veaux ISBN: 9780321854018 481

Solution for problem 9 Chapter Part I

Stats Modeling the World | 4th Edition

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Stats Modeling the World | 4th Edition | ISBN: 9780321854018 | Authors: David E. Bock, Paul F. Velleman, Richard D. De Veaux

Stats Modeling the World | 4th Edition

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Problem 9

Fraud detection A credit card bank is investigating the incidence of fraudulent card use. The bank suspects that the type of product bought may provide clues to the fraud. To examine this situation, the bank looks at the Standard Industrial Code (SIC) of the business related to the transaction. This is a code that was used by the U.S. Census Bureau and Statistics Canada to identify the type of every registered business in North America.2 For example, 1011 designates Meat and Meat Products (except Poultry), 1012 is Poultry Products, 1021 is Fish Products, 1031 is Canned and Preserved Fruits and Vegetables, and 1032 is Frozen Fruits and Vegetables. A company intern produces the following histogram of the SIC codes for 1536 transactions: He also reports that the mean SIC is 5823.13 with a standard deviation of 488.17. a) Comment on any problems you see with the use of the mean and standard deviation as summary statistics. b) How well do you think the Normal model will work on these data? Explain.

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Lecture 4: Gathering Useful Data for Examining Relationships 6.1 Speaking the Language of Research Studies Definitions: -­ Observational Studies: The researchers simply observe or measure the participants (about opinions, behaviors, or outcomes) and do not assign any treatments or conditions. Participants are not asked to do anything differently. -­ Experiments: The researchers manipulate something and measure the effect of the manipulation on some outcome of interest. Often participants are randomly assigned to the various conditions or treatments. Most studies, either observational or experimental, are

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Chapter Part I, Problem 9 is Solved
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Textbook: Stats Modeling the World
Edition: 4
Author: David E. Bock, Paul F. Velleman, Richard D. De Veaux
ISBN: 9780321854018

Stats Modeling the World was written by and is associated to the ISBN: 9780321854018. The answer to “Fraud detection A credit card bank is investigating the incidence of fraudulent card use. The bank suspects that the type of product bought may provide clues to the fraud. To examine this situation, the bank looks at the Standard Industrial Code (SIC) of the business related to the transaction. This is a code that was used by the U.S. Census Bureau and Statistics Canada to identify the type of every registered business in North America.2 For example, 1011 designates Meat and Meat Products (except Poultry), 1012 is Poultry Products, 1021 is Fish Products, 1031 is Canned and Preserved Fruits and Vegetables, and 1032 is Frozen Fruits and Vegetables. A company intern produces the following histogram of the SIC codes for 1536 transactions: He also reports that the mean SIC is 5823.13 with a standard deviation of 488.17. a) Comment on any problems you see with the use of the mean and standard deviation as summary statistics. b) How well do you think the Normal model will work on these data? Explain.” is broken down into a number of easy to follow steps, and 171 words. The full step-by-step solution to problem: 9 from chapter: Part I was answered by , our top Statistics solution expert on 03/16/18, 04:57PM. This textbook survival guide was created for the textbook: Stats Modeling the World, edition: 4. This full solution covers the following key subjects: . This expansive textbook survival guide covers 31 chapters, and 1357 solutions. Since the solution to 9 from Part I chapter was answered, more than 237 students have viewed the full step-by-step answer.

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Fraud detection A credit card bank is investigating the incidence of fraudulent card