# Question: The Internal Revenue Service compiles data on income tax returns

The Internal Revenue Service compiles data on income tax returns and summarizes its findings in Statistics of Income. The first two columns of Table 5.21 show a frequency distribution (number of returns) for adjusted gross income (AGI) from federal individual income tax returns, where K = thousand.

A federal individual income tax return is selected at random.

a. Determine P(A), the probability that the return selected shows an AGI under $10K.

b. Find the probability that the return selected shows an AGI between $30K and $100K (i.e., at least $30K but less than $100K).

c. Compute the probability of each of the seven events in the third column of Table 5.21, and record those probabilities in the fourth column.

A federal individual income tax return is selected at random.

a. Determine P(A), the probability that the return selected shows an AGI under $10K.

b. Find the probability that the return selected shows an AGI between $30K and $100K (i.e., at least $30K but less than $100K).

c. Compute the probability of each of the seven events in the third column of Table 5.21, and record those probabilities in the fourth column.

## Answer to relevant Questions

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