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The chance of an IRS audit for a tax return with over $25,000 in income is...

The chance of an IRS audit for a tax return with over $25,000 in income is about 2% per year. We are interested in the expected number of audits a person with that income has in a 11-year period. Assume each year is independent.

1. In words, define the Random Variable X.

2. List the values that X may take on.

3. Give the distribution of X.

4. How many audits are expected in a 11-year period? (Round your answer to two decimal places.)

5. Find the probability that a person is not audited at all. (Round your answer to four decimal places.)

6. Find the probability that a person is audited more than twice. (Round your answer to four decimal places.)

Math   Statistics-And-Probability   
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