Ask Question
3 October, 14:30

According to the Internal Revenue Service (IRS), the chances of your tax return being audited are about 6 in 1,000 if your income is less than $50,000; 10 in 1,000 if your income is between $50,000 and $99,999; and 49 in 1,000 if your income is $100,000 or more (Statistical Abstract of the United States: 1995). If two taxpayers with incomes under $50,000 are randomly selected and two with incomes more than $100,000 are randomly selected, what is the probability that none of these taxpayers will be audited by the IRS?

+3
Answers (1)
  1. 3 October, 14:41
    0
    The probability that none of these taxpayers will be audited by the IRS is 0.8996 or 89.36%

    Step-by-step explanation:

    According to given:

    Probability of being audited for income less than $50,000 = 6/1000 = 0.006

    Therefore,

    Probability of not being audited for income less than $50,000 = 1 - 0.006 = 0.994

    Similary,

    Probability of being audited for income more than $100,000 = 49/1000 = 0.049

    Therefore,

    Probability of not being audited for income more than $100,000 = 1 - 0.049 = 0.951

    Now, for the probability of 2 persons with less $50,000 income and 2 persons with more than $100,000 income, to not being audited, we must multiply the probabilities of not being audited of each of the 4 persons.

    Therefore,

    Probability that none of them is audited = (0.994) (0.994) (0.951) (0.951)

    Probability that none of them is audited = 0.8936 = 89.36%
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “According to the Internal Revenue Service (IRS), the chances of your tax return being audited are about 6 in 1,000 if your income is less ...” in 📗 Mathematics if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers