Question
Suppose that the IRS audits 3% of all tax returns that are filed electronically and 9% of all tax returns that are filed via paper.
Suppose that the IRS audits 3% of all tax returns that are filed electronically and 9% of all tax returns that are filed via paper. Furthermore, within any group of people whether one person is audited or not is independent of whether any other person in the group is audited. John and Sam file electronically and Pierre files a paper tax form.
What is the probability that John's return will be audited?
What is the probability that both John and Sam will be audited?
What is the probability that both John and Pierre will be audited?
What is the probability that none of them will be audited?
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