business intelligence

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Question (2) Case study (9 Marks) Let us consider the problem of the "insurance car accidents fraud" in which audit tries to find fraud given the following dataset shown in Table 1. The target variable: Audit finds fraud, no fraud. Predictors: () Prior pending legal charges (YES/NO); and (ii) Type of accident (Slight/Serious). Charges? Type of accident Outcome NO Serious Truthful YES Serious Fraud NO Serious Fraud NO Serious Truthful NO Slight Truthful NO Slight Truthful YES Slight Fraud YES Slight Truthful NO Slight Truthful YES Serious Fraud Table 1: Dataset of the "insurance car accidents fraud" Question (2) Case study 1) Using Exact Bayes Calculations: (1 mark) 2) Using Naive Bayes Calculations: (3 marks, 13 mark)