A group of 50,000 tax forms has an average gross income of $37,000, with an SD of
Question:
A group of 50,000 tax forms has an average gross income of $37,000, with an SD of $20,000. Furthermore, 20% of the forms has a gross income over $50,000. A group of 900 forms is chosen at random for an audit. To estimate the chance that between 19% and 21% of the forms chosen for an audit have gross incomes over $50,000, a box model is needed.
The number of tickets in the box will be [a].
Each ticket in the box shows [b].
The SD of the box is $20,000. This statement is [c].
The number of draws is 900. This statement is [d].
The chance (approximately) that between 19% and 21% of the forms chosen for audit have gross incomes over $50,000 is [e]%. (if the chance cannot be found type 'NA')
The chance (approximately) that between 9% and 11% of the forms chosen for audit have a gross income over $75,000 is [f]%. (if the chance cannot be found type 'NA')
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill