Tax Audit How does the IRS decide on the percentage of income tax returns to audit for each state? Suppose they do it by randomly selecting 50 values from a normal distribution with a mean equal to...

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Tax Audit
How does the IRS decide on the percentage of income tax returns to audit for each state? Suppose they do it by randomly selecting 50 values from a normal distribution with a mean equal to 1.55% and a standard deviation equal to .45%. (Computer programs are available for this type of sampling.)


a. What is the probability that a particular state will have more than 2.5% of its income tax returns audited?


b. What is the probability that a state will have less than 1% of its income tax returns audited?



Answered Same DayDec 24, 2021

Answer To: Tax Audit How does the IRS decide on the percentage of income tax returns to audit for each state?...

Robert answered on Dec 24 2021
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