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Suppose every fraud investigation costs $1,500, and the average amount lost per ...

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Suppose every fraud investigation costs $1,500,

and the average amount lost per claim from not detecting fraud when it is

present, is $3,000.  Which of the two

thresholds considered above gives the lowest overall average cost, where the

costs include investigating claims that did not involve fraud, and not

investigating claims that did involve fraud.

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