Question
According to the Internal Revenue Service (IRS), an average taxpayer receives a refund at the end of each year.Experts explain that this is because taxpayers
According to the Internal Revenue Service (IRS), an average taxpayer receives a refund at the end of each year.Experts explain that this is because taxpayers would rather have the IRS keep the money during the year and receive a refund at the end of the year than to owe (negative refund) IRS at the end of the year.Assume that the amounts refunded on tax returns are normally distributed with a mean of $2535 and a standard deviation of $1493.Please indicate your answers in the boxes provided.Any supporting work may be shown outside the dark boxes. Format your answers with no more than 4 places after the decimal.
a)What is the probability that a taxpayer receives a refund that is greater than $4000? Answer
b)What is the probability that the IRS issues a refund that is between $500 and $1000? Answer
c)What is the minimum dollar amount of refund received by individuals receiving the top 30% of refund amounts? Answer
d)Provide two values between which the refund amount for the middle 50% of the distribution lies. Answer and
e) What is the probability that a taxpayer gets a refund? Answer
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