10. Tax Audits In Exercise 9, we suggested that the IRS assigns auditing rates per state by...

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10. Tax Audits In Exercise 9, we suggested that the IRS assigns auditing rates per state by randomly selecting 50 auditing percentages from a normal distribution with a mean equal to 1.55% and a standard deviation of .45%.

a. What is the probability that a particular state would have more than 2% of its tax returns audited?

b. What is the expected value of x, the number of states that will have more than 2% of their income tax returns audited?

c. Is it likely that as many as 15 of the 50 states will have more than 2% of their income tax returns audited?

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Introduction To Probability And Statistics

ISBN: 9780357114469

15th Edition

Authors: William Mendenhall Iii , Robert Beaver , Barbara Beaver

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