+ Reply to Thread
Results 1 to 2 of 2

Thread: Probability Help

  1. #1
    Points: 5, Level: 1
    Level completed: 9%, Points required for next Level: 45

    Thanked 0 Times in 0 Posts

    Post Probability Help

    Hello! Taking an introductory course on statistics in college. Confused about one question. It reads:
    The IRS reports that 15% of the tax returns where the adjusted gross income exceeded $1 million will be subject to computer audit. For a particular year, a CPA completed 16 returns where the adjusted gross income exceeds $1 million.
    a.) Which probability model does this situation follow?
    b.) What is the probability that exactly one of these returns is audited?

    I realize that A is just asking me for a probability formula that I will use to solve for in B. But I don't get how I can solve B if I don't have the total number of audits completed.
    Please help me! I would greatly appreciate it!

  2. #2
    TS Contributor
    Points: 12,227, Level: 72
    Level completed: 45%, Points required for next Level: 223
    rogojel's Avatar
    I work in Europe, live in Hungary
    Thanked 332 Times in 312 Posts

    Re: Probability Help

    you could interpret the statement to mean that audits are picked randomly and and any return of more the 1 million usd has a 15% chance of being picked.

    Then the answers should be easy.


+ Reply to Thread


Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts

Advertise on Talk Stats