Can someone solve this for me and give me the steps thx
1 answer:
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Answer:
(A) The odds that the taxpayer will be audited is approximately 0.015.
(B) The odds against these taxpayer being audited is approximately 65.67.
Step-by-step explanation:
The complete question is:
Suppose the probability of an IRS audit is 1.5 percent for U.S. taxpayers who file form 1040 and who earned $100,000 or more.
A. What are the odds that the taxpayer will be audited?
B. What are the odds against such tax payer being audited?
Solution:
The proportion of U.S. taxpayers who were audited is:
P (A) = 0.015
Then the proportion of U.S. taxpayers who were not audited will be:
P (A') = 1 - P (A)
= 1 - 0.015
= 0.985
(A)
Compute the odds that the taxpayer will be audited as follows:
Thus, the odds that the taxpayer will be audited is approximately 0.015.
(B)
Compute the odds against these taxpayer being audited as follows:
Thus, the odds against these taxpayer being audited is approximately 65.67.
Step-by-step explanation:
I've posted solutions in the picture. Rather the ways to solve them. Check and find answers on your own.
Also, I've not solved the problem by differential calculus. You can, obviously, if you're interested. Use it for ease and for tougher equations.
