Fraud detection has become an indispensable tool for banks and credit card companies to combat fraudulent credit
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Fraud detection has become an indispensable tool for banks and credit card companies to combat fraudulent credit card transactions. A fraud detection firm raises an alarm on 5% of all transactions and on 80% of fraudulent transactions. What is the probability that the transaction is fraudulent if the firm does not raise an alarm? Assume that 1% of all transactions are fraudulent.
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Let event A correspond to Firm raisin...View the full answer
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Related Book For
Business Analytics Communicating With Numbers
ISBN: 9781260785005
1st Edition
Authors: Sanjiv Jaggia, Alison Kelly, Kevin Lertwachara, Leida Chen
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