Exam MAS-I Practice Question 158
Study guide: Exam MAS-I
In an insurer's training data, 5% of claims are fraudulent. Within each class, the rates of three claim flags are:
| Flag | Fraud | Legitimate |
|---|---|---|
| Reported more than 30 days after the loss | 0.40 | 0.12 |
| Claimant made another claim in the past year | 0.35 | 0.15 |
| Police report filed | 0.30 | 0.70 |
A new claim was reported 45 days after the loss, the claimant made no other claim in the past year, and no police report was filed.
Using a naive Bayes classifier with all three flags, calculate the probability that the claim is fraudulent.
- A) Less than 0.10
- B) At least 0.10, but less than 0.20
- C) At least 0.20, but less than 0.30
- D) At least 0.30, but less than 0.50
- E) At least 0.50
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