The IRS reports that 15% of returns where the adjusted gross income is more than $1,000,000 will

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The IRS reports that 15% of returns where the adjusted gross income is more than $1,000,000 will be subject to a computer audit. For the year 2017, Fred Friendly, CPA, completed 16 returns where the adjusted gross income was more than $1,000,000.
a. What is the probability exactly one of these returns will be audited?
b. What is the probability at least one will be audited?

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Statistical Techniques in Business and Economics

ISBN: 978-1259666360

17th edition

Authors: Douglas A. Lind, William G Marchal

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