Question
A tax auditor is selecting a sample of 9 tax returns for an audit. If 3...
A tax auditor is selecting a sample of 9 tax returns for an audit. If 3 or more of these returns are "improper," the entire population of 45 tax returns will be audited.
a. What is the probability that the entire population will be audited if the true number of improper returns in the population is 15?
Homework Answers
Answer #1
The probability distribution function of hyper geometric is,
Given that,
n =9, N= 45 , m= 15
= 1 - (0.0161 + 0.0991 + 0.2412) By using excel function "=HYPGEOM.DIST(x,9,15,45,FALSE)"
= 0.6436
the probability that the entire population will be audited if the
true number of improper returns in the population is 15 is
0.6436
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