Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The chance of an IRS audit for a tax return with over $ 2 5 , 0 0 0 in income is about 2 %
The chance of an IRS audit for a tax return with over $ in income is about per year. We are interested in the expected number of audits a person with that income has in a ear period. Assume each year is independent.
Part a
In words, define the Random Variable
the yearly income of a person
the number of audits the IRS does each year
the number of audits a person who has an income over $ receives in a year period
the number of audits the IRS does every years for a person who has an income over $
Part b
List the values that may take on
dots,
dots
dots,
dots,
Part c
Give the distribution of
Part d
How many audits are expected in a year period? Round your answer to two decimal places.
audits
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