Question 4.5

4.5 Financial fraud.

It has been estimated that around one in six fraud victims knew the perpetrator as a friend or acquaintance. Financial fraud includes crimes such as unauthorized credit card charges, withdrawal of money from a savings or checking account, and opening an account in someone else's name. Suppose you want to use a physical device to simulate the outcome that a fraud victim knew the perpetrator versus the outcome that the fraud victim does not know the perpetrator. What device would you use to conduct a simulation experiment? Explain how you would match the outcomes of the device with the fraud scenario.

4.5

You could use a 6-sided dice roll: on a 1, the victim knows the perpetrator; otherwise, not.