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