An auditing procedure for income tax returns has the following characteristics: If the return is incorrect, the

Question:

An auditing procedure for income tax returns has the following characteristics: If the return is incorrect, the probability is 90% that it will be rejected; if the return is correct, the probability is 95% that it will be accepted. Suppose that 80% of all income tax returns are correct. If a return is audited and rejected, what is the probability that the return was actually correct?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Finite Mathematics and Its Applications

ISBN: 978-0134768632

12th edition

Authors: Larry J. Goldstein, David I. Schneider, Martha J. Siegel, Steven Hair

Question Posted: