According to the Internal Revenue Service, the average income tax refund for the 2011 tax year was

Question:

According to the Internal Revenue Service, the average income tax refund for the 2011 tax year was $ 2,913. Assume the refund per person follows the normal probability distribution with a standard deviation of $ 950.

a. What is the probability that a randomly selected tax return refund from the 2011 tax year will be

1. More than $ 2,000?

2. Between $ 1,600 and $ 2,500?

3. Between $ 3,200 and $ 4,000?

b. Confirm the answers to part a using Excel or PHStat.

c. What refund amount represents the 35th percentile of tax returns?

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Business Statistics

ISBN: 9780321925121

2nd Edition

Authors: Robert A. Donnelly

Question Posted: