In: Statistics and Probability
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.
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?
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?