The chances of a tax return being audited are about 21 in 1 comma 000 if an income is less than $100,000 and 29 in 1 comma 000 if an income is $100,000 or more. Complete parts a through e. a. What is the probability that a taxpayer with income less than $100,000 will be audited? With income of $100,000 or more? Upper P (taxpayer with income less than $ 100 comma 000 is audited )equals nothing (Type an integer or a decimal.) What is the probability that a taxpayer with income of $100,000 or more will be audited? Upper P (taxpayer with income of $ 100 comma 000 or higher is audited )equals nothing (Type an integer or a decimal.) b. If five taxpayers with incomes under $100,000 are randomly selected, what is the probability that exactly one will be audited? That more than one will be audited?

a) p=0.021

b) p=0.029

c) Exactly one audit: P=0.0965

More than one audit: P=0.0042

Step-by-step explanation:

a) If the income is less than $100,000, there is a probability of 21 in 1,000 of being audited. This is:

If the income is equal or more than $100,000, there is a probability of 29 in 1,000 of being audited. This is:

b) If we have 5 taxpayers with incomes under $100,000, and we want to know the probability that exactly one will be audited, we can model this a binomial randome variable, with p=0.021 and n=5:

There is a probability of 0.0965 that exactly one out of a sample of five taxpayers with incomes under $100,000 will be audited.

To calculate the probability that more than one will be audited, we use the same distribution:

There is a probability of 0.0042 that more than one out of a sample of five taxpayers with incomes under $100,000 will be audited.

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step-by-step explanation:

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