Question: In Exercise 6.28, we suggested that the IRS assigns auditing rates per state by randomly selecting 50 auditing percentages from a normal distribution with a
In Exercise 6.28, we suggested that the IRS assigns auditing rates per state by randomly selecting 50 auditing percentages from a normal distribution with a mean equal to 1.55% and a standard deviation of .45%.
a. What is the probability that a particular state would have more than 2% of its tax returns audited?
b. What is the expected value of x, the number of states that will have more than 2% of their income tax returns audited?
c. Is it likely that as many as 15 of the 50 states will have more than 2% of their income tax returns audited?
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