A group of 50,000 tax forms has an average gross income of $37,000, with an SD o

Question

A group of 50,000 tax forms has an average gross income of $37,000, with an SD of $20,000. Furthermore, 20% of the forms has a gross income over $50,000. A group of 900 forms is chosen at random for an audit. To estimate the chance that between 19% and 21% of the forms chosen for an audit have gross incomes over $50,000, a box model is needed.

The number of tickets in the box will be [a]. (Options: 900, 50000)

Each ticket in the box shows [b]. (Options: 'a zero or a one', 'gross income')

The SD of the box is $20,000. This statement is [c]. (Options: true, false)

The number of draws is 900. This statement is [d].   (Options: true, false)

The chance (approximately) that between 19% and 21% of the forms chosen for audit have gross incomes over $50,000 is [e]%. (if the chance cannot be found type 'NA')

The chance (approximately) that between 9% and 11% of the forms chosen for audit have a gross income over $75,000 is [f]%.   (if the chance cannot be found type 'NA')

Explanation / Answer

(a)There should be 50,000 tickets

(b)Each ticket shows a zero

(c)False.

(d)True.

e)The percentage of forms in the sample with gross incomes over $50,000 will be 20%, give or take 12/900*100= 1.33% or so. The chance is about 55%.

PS: We are directed to solve only first 4 parts of a question if multi part question is posted

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

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