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1 Nov 2021

Given information

As per the given question,

  • The chance of an IRS audit for a tax return with over $ in income is about % per year.
  • We are interested in the expected number of audits a person with that income has in a -year period.
  • Assume each year is independent.

 

To find:- Part (c). Give the distribution of .~ _____(_____,_____)

Step-by-step explanation

Step 1.

As per the given question,

  • We know that the chance of an IRS audit for tax returns is around % every year.
  • Thus, there would be only two possible outcomes in this experiment, since a total of years is being considered.
  • Hence, the binomial distribution can be expressed as ~ .

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Introductory Statistics
OER Edition, 2013
Openstax
ISBN: 9781938168208

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