*need explanation using excel** Dottie\'s Tax Service specializes in federal tax
ID: 3369344 • Letter: #
Question
*need explanation using excel**
Dottie's Tax Service specializes in federal tax returns for professional clients, such as physicians, dentists, accountants, and lawyers. A recent audit by the IRS of the returns she prepared indicated that an error was made on 13% of the returns she prepared last year. Assuming this rate continues into this year and she prepares 52 returns, what is the probability that she makes errors on:
a. More than 7 returns? (Round z-score computation to 2 decimal places and your final answer to 4 decimal places.) Probability
b. At least 7 returns? (Round z-score computation to 2 decimal places and your final answer to 4 decimal places.) Probability
c. Exactly 7 returns? (Round z-score computation to 2 decimal places and your final answer to 4 decimal places.) Probability
Explanation / Answer
need explanation using excel**
Dottie's Tax Service specializes in federal tax returns for professional clients, such as physicians, dentists, accountants, and lawyers. A recent audit by the IRS of the returns she prepared indicated that an error was made on 13% of the returns she prepared last year. Assuming this rate continues into this year and she prepares 52 returns, what is the probability that she makes errors on:
a. More than 7 returns? (Round z-score computation to 2 decimal places and your final answer to 4 decimal places.) Probability
p=0.13, n=52
Expectation = np = 6.76
Variance = np(1 - p) = 5.8812
Standard deviation = 2.4251
Z value for 7, z =(7-6.76)/2.4251 =0.10
P( x >7) = 1-P( z ? 7) = 1-P( z <0.10) =0.460172
=0.4602 ( 4 decimals)
Excel function used =1-NORM.S.DIST(0.1,TRUE)
b. At least 7 returns? (Round z-score computation to 2 decimal places and your final answer to 4 decimal places.) Probability
Z value for 7, z =(7-6.76)/2.4251 =0.10
P( x ?7) = P( z <0.10) = 0.539828
=0.5398 ( 4 decimals)
Excel function used =NORM.S.DIST(0.1,TRUE)
c. Exactly 7 returns? (Round z-score computation to 2 decimal places and your final answer to 4 decimal places.) Probability
P( x=0) =0.0000
Probability for exact value for continuous distribution is 0.
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