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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 year period. Assume each year is independent.
Part a
In words, define the Random Variable
the number of audits the IRS does each year
the yearly income of a person
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
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