Question
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started