According to Internal Revenue Service (IRS), the chances of your tax return bein

Question

According to Internal Revenue Service (IRS), the chances of your tax return being audited arc about 300 in 1,000 if your income is less than S100,000 and 400 in 1.000 if your income is $ 100,000 or more (Statistical Abstract of the United States: 1998). Original figures have been modified just for exam purpose. What is the probability that a taxpayer with income less than $100,000 will be audited by the IRS? With income $ 100,000 or more? If 10 taxpayers with incomes under $100,000 arc randomly selected, what is the probability that 1) none of these taxpayers will be audited by the IRS? 2) That exactly six will be audited? 3) That at least five will be audited? That between three and seven taxpayers will be audited? (I 'sc both the appropriate binomial table and the formula, p9x0 = (n x0 p^x q^n-x, to answer 1) and 2), and use the table only to answer 3) and 4), respectively). What assumptions do you have to make in order to answer part b by using the binomial distribution?

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According to Internal Revenue Service (IRS), the chances of your tax return bein

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