1. Suppose the result of a taxation audit using sampling is that the amount of tax owed,

θ, has a normal distribution with mean $100,000 and a standard deviation of $10,000.

Using the loss function (7.69), how much tax should be collected if:

(a) b/a = 1

(b) b/a = 2

(c) b/a = 4

(d) b/a = 19?