The internal Revenue Services is studying the category of charitable constributi

Question

The internal Revenue Services is studying the category of charitable constributions. A sample of 30 returns is selected from young couples between the ages of 20 and 35 who had and adjusted gross income of more than $100,000. Of these 30 returns, 4 had chariatable contributions of more than $1,000. Suppose 3 of these return are selected for a comprehensive audit.                                                                                                                         What

What is the probability excatly one of the three audited had a charitable deduction of more than $1,000?

Explanation / Answer

Note that the probability of x successes out of n trials is          
          
P(x) = C(N-K, n-x) C(K, x) / C(N, n)          
          
where          
N = population size =    30      
K = number of successes in the population =    4      
n = sample size =    3      
x = number of successes in the sample =    1      
          
Thus,          
          
P(   1   ) =    0.320197044 [ANSWER]

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.