Question: ! ! ! ! ! ! ! ! ####### The IRS is considering a new system to detect fraud ( cheating ) in taxpayer returns.

!!!!!!!!####### The IRS is considering a new system to detect fraud (cheating) in taxpayer returns. The system is however not perfect. The system detects 92% of taxpayers who have cheated on their tax returns. The system also gives a false positive for 5% of taxpayers who have in fact not cheated. Suppose that 7% of all taxpayers have actually cheated on their returns. if a random chosen taxpayer registers a positive results on the new system, what is the actual chance the taxpayer cheated?

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