1. IRS data show that 15% of personal tax returns reporting an adjusted gross income (AGI) of more than $2,000,000 will be subject to a computer audit. This year a CPA completed 13 returns with an AGI of more than $2,000,000. The CPA wants to know the likelihood that the returns will be audited.

a. What probability distribution applies to this situation?

b. What is the probability exactly one of these returns is audited?

c. What is the probability at least one of these returns is audited?