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​?

Math   Statistics-And-Probability   
0 0
Add a commentTranscribed image text
Next >

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

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A tax auditor is selecting a sample of 5 tax returns for an audit. If 2...
A tax auditor is selecting a sample of 5 tax returns for an audit. If 2 or more of these returns are "improper," the entire population of 55 tax returns will be audited. Q. What is the probability that the entire population will be audited if the true number of improper returns in the population is: a) 15 b) 20 c) 5 d) 10
A tax auditor is selecting a sample of 8 tax returns for an audit. If 3...
A tax auditor is selecting a sample of 8 tax returns for an audit. If 3 or more of these returns are​ "improper," the entire population of 45 tax returns will be audited. Complete parts​ (a) through​ (e) below. a. What is the probability that the entire population will be audited if the true number of improper returns in the population is 15​? The probability is? ​(Round to four decimal places as​ needed.) b. What is the probability that the...
1) The concept of stratification relates to _______. A) only targeting certain accounts for audit procedures...
1) The concept of stratification relates to _______. A) only targeting certain accounts for audit procedures to be applied to B) the idea of categorizing a sample based on certain sample characteristics C) liability accounts only D) equity accounts only 2)In which of the following situations is the auditor most likely to use audit data analytics? A) Internal controls are weak. B) The available data is reliable and comes from a strong system of internal controls. C) Certain audit procedures...
A IRS auditor randomly selects 3 tax returns from 60 returns of which 15 contain errors....
A IRS auditor randomly selects 3 tax returns from 60 returns of which 15 contain errors. what is the probability that she selects none of those containing errors? A) 0.4219 B)0.4147 C) 0.0156 D)0.0133
The Internal Revenue Service is studying the category of charitable contributions. A sample of 22 returns...
The Internal Revenue Service is studying the category of charitable contributions. A sample of 22 returns is selected from young couples between the ages of 20 and 35 who had an adjusted gross income of more than $100,000. Of these 22 returns, 7 had charitable contributions of more than $1,000. Suppose 6 of these returns are selected for a comprehensive audit. Explain why the hypergeometric distribution is appropriate. Because: you are sampling a small population without replacement. you are sampling...
1. The accounts receivable of Smith Company have a total book value of $120,000. An auditor...
1. The accounts receivable of Smith Company have a total book value of $120,000. An auditor has selected an audit sample of accounts with a total book value of $1,000 and an audited value of $1,200. Extrapolating this deviation over the entire population would result in an estimated total audited value of: a. $144,000 b. $140,000 c. $120,000 d. $100,000 2. Which of the following is only applicable to a public company audit report? a. A public company report is...
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 13-year period. Given that the population follows a binomial distribution, find the probability that a person is audited more than 4 times in a 13-year period. Round to four decimal places.
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. Given that the population follows a binomial distribution, find the probability that a person is audited more than 4 times in a 11-year period. Round to four decimal places.
After planning the sample, selecting the sample and performing the tests it is necessary to evaluate...
After planning the sample, selecting the sample and performing the tests it is necessary to evaluate the results. This final stage requires the auditor to consider the qualitative aspects of the errors that were found and to project errors to the population and conclude on the audit test. Explain what is involved in these two final steps of sampling.
For the fiscal year 2007, the IRS audited 1.77% of individual tax returns with income of...
For the fiscal year 2007, the IRS audited 1.77% of individual tax returns with income of $100,000 or more. a. Would it be unusual for a return with income of $100,000 to be audited? b. What is the probability that two randomly selected returns with income of $100,000 will be audited? c. What is the probability that two randomly selected returns with income of $100,000 will not be audited? d. What is the probability that at least one of two...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT