Question
A very successful car washing shop has roughly2.4 million dollarrevenue every year. Since this is quite a large amount of money for a car washing
A very successful car washing shop has roughly2.4 million dollarrevenue every year. Since this is quite a large amount of money for a car washing shop, theIRS (tax people)wants to check whether this establishment is laundering money (sounds familiar?); however, due to the limited resources, they want to be95% confidentin their decision; thus, they send an investigator to record the daily number of customers and record down how much that each customers have to pay on average for the service. The investigator came back and reported that there are roughly2,000 customers for the monthand each one of them paying roughly80 dollars on averagefor the services with astandard deviation of 30 dollars. Given this information, what is the approximate probability that the car washing shop can achieve it current claimed revenue and what would be your conclusion here about the legitimacy of this car washing shop(i.e whether they are laundering money or not)?
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