carcass wrote:
How much did credit-card fraud cost United States banks in year X to the nearest $ 10 million?
(1) In year X, counterfeit cards and telephone and mail-order fraud accounted for 39 percent of the total amount that card fraud cost the banks.
(2) In year X, stolen cards accounted for $ 158.4 million, or 16 percent, of the total amount that credit-card fraud cost the banks.
Solution:Statement One Alone:We know the combined percent of counterfeit cards, and telephone and mail-order frauds; however, we don’t know the combined dollar amount of these two types of frauds. For instance, if the combined dollar amount of counterfeit cards and telephone and mail-order fraud was $3.9 million, then the credit card fraud cost US banks $10 million in year X. However, if the combined dollar amount of counterfeit cards and telephone and mail-order fraud was $39 million, then the credit card fraud cost US banks $100 million in year X. Statement one alone is not sufficient.
Statement Two Alone:We know both the dollar amount and percent of stolen cards in year X. To determine how much credit card fraud cost US banks in year X, we can simply divide $158.4 million by 0.16. Statement two alone is sufficient.
Answer: B _________________
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