ST

1. For a certain income level, the IRS knows that the amounts claimed for Medical Deductions ( X 1 ), Charitable Contributions ( X 2 ), and Miscellaneous Deductions ( X 3 ), are Independent Normally distributed variables with means $400, $800, and $100 and standard deviations $100, $250, and $40 respectively. a) What is the probability that the amount claimed for these 3 deductions is less that $1600 b) If someone, from this income level, reports on his return a total of $2100 for these deductions, how likely is this or a larger amount? Justify your answer!