According to the Australian Tax Office, income tax returns one year averaged $1,332 in refunds for taxpayers.
Question:
According to the Australian Tax Office, income tax returns one year averaged $1,332 in refunds for taxpayers. One explanation of this figure is that taxpayers would rather have the government keep back too much money during the year than to owe it money at the end of the year. Suppose the average amount of tax at the end of a year is a refund of $1,332, with a standard deviation of $725. Assume that amounts owed or due on tax returns are normally distributed.
(a) What proportion of tax returns show a refund greater than $2,000?
(b) What proportion of the tax returns show that the taxpayer owes money to the government?
(c) What proportion of the tax returns show a refund between $100 and $700? Round z values to 2 decimal places. Round your answers to 4 decimal places, the tolerance is +/-0.0001
Principles of Taxation for Business and Investment Planning 2016 Edition
ISBN: 9781259549250
19th edition
Authors: Sally Jones, Shelley Rhoades Catanach