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In: Statistics and Probability

According to the IRS, the chances of your tax return being audited are about 15 in...

According to the IRS, the chances of your tax return being audited are about 15 in 1,000 if your income is less than $100,000 and 30 in 1,000 if your income is $100,000 or more.

  1. a) If five tax payers with incomes under $100,000 are randomly selected, what is

    the probability that more than one of these five taxpayers will be audited?

  2. b) If two taxpayers with incomes under $100,000 are randomly selected and two

    with incomes of $100,000 or more are randomly selected, what is the probability that none of these taxpayers will be audited?

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