Textbook ExpertVerified Tutor
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 (d). How many audits are expected in a -year period?
Step-by-step explanation
Step 1.
As per the given question,
We can express the average value for the required binomial distribution as follows:-
, where is and is .
or, ,
or,
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