Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

According to the Internal Revenue Service, income tax returns one year averaged $1,332in refunds for taxpayers. One explanation of this figure is that taxpayers would

According to the Internal Revenue Service, income tax returns one year averaged $1,332in refunds for taxpayers. One explanation of this figure is that taxpayers would rather have the government keep back too much money during the year than to owe it money at the end of the year. Suppose the average amount of tax at the end of a year is a refund of $1,332, with a standard deviation of $725. Assume that amounts owed or due on tax returns are normally distributed.

(a)What proportion of tax returns show a refund greater than $1,900?

(b)What proportion of the tax returns show that the taxpayer owes money to the government?

(c)What proportion of the tax returns show a refund between $140and $640?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A Short Course In Automorphic Functions

Authors: Joseph Lehner

1st Edition

0486799921, 9780486799926

More Books

Students also viewed these Mathematics questions

Question

Roll out international HRM practices for franchisees.

Answered: 1 week ago