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How do I do this problem in my TI-84 Plus CE The chance of an IRS audit for a tax return with over $25,000 in
How do I do this problem in my TI-84 Plus CE
The chance of an IRS audit for a tax return with over $25,000 in income is about 2% per year. We are interested in the expected number of audits a person with that income has in a13-year period. Assume each year is independent.
- Part (a)
- In words, define the Random VariableX.
- the number of audits the IRS does each year
- the yearly income of a person
- the number of audits the IRS does every 13 years for a person who has an income over $25,000
- the number of audits a person who has an income over $25,000 receives in a 13-year period
- Part (b)
- List the values thatXmay take on.
- X= 1, 2, 3, ...
- X= 0, 1, 2, ..., 12, 13
- X= 1, 2, 3, ..., 98, 99, 100
- X= 1, 2, 3, ..., 12, 13
- Part (c)
- Give the distribution ofX.
- X~,
- Part (d)
- How many audits are expected in a13-year period? (Round your answer to two decimal places.)
- audits
- Part (e)
- Find the probability that a person is not audited at all. (Round your answer to four decimal places.)
- Part (f)
- Find the probability that a person is audited more than twice. (Round your answer to four decimal places.)
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