Answer:
a) The odds that such a taxpayer will be audited is 4%.
b) The odds against such a taxpayer being audited is 96%.
Step-by-step explanation:
a) Data and Calculations:
The probability of an IRS audit = 3.8% for U.S. taxpayers who file form 1040 and earned $100,000.
This is the same as the odds that such a taxpayer will be audited. Odds is the likelihood or chance that an event will take place.
b) The probability of not being audited is 100 - 3.8% = 96.2%
The odd against being audited is the likelihood or chance that an event will not take place.
