Question

Software to detect fraud in consumer phone cards tracks the number of metropolitan areas where calls originate each day. It is found that 4% of the legitimate users originate calls from two or more metropolitan areas in a single day. However, 30% of fraudulent users originate calls from two or more metropolitan areas in a single day. The proportion of fraudulent users is 0.0177%. If the same user originates calls from two or more metropolitan areas in a single day, what is the probability that the user is fraudulent? Round your answer to six decimal places (e.g. 98.765432).

Answer 1

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