Answer:
The probability that none of these taxpayers will be audited by the IRS is 0.8996 or 89.36%
Step-by-step explanation:
According to given:
Probability of being audited for income less than $50,000 = 6/1000 = 0.006
Therefore,
Probability of not being audited for income less than $50,000 = 1 - 0.006 = 0.994
Similary,
Probability of being audited for income more than $100,000 = 49/1000 = 0.049
Therefore,
Probability of not being audited for income more than $100,000 = 1 - 0.049 = 0.951
Now, for the probability of 2 persons with less $50,000 income and 2 persons with more than $100,000 income, to not being audited, we must multiply the probabilities of not being audited of each of the 4 persons.
Therefore,
Probability that none of them is audited = (0.994)(0.994)(0.951)(0.951)
<u>Probability that none of them is audited = 0.8936 = 89.36%</u>