SOLUTION: A tax specialist has estimated that the probability that a tax return selected at random will be audited is 0.04. Furthermore, he estimates the probability that an audited return w

Question 1118541: A tax specialist has estimated that the probability that a tax return selected at random will be audited is 0.04. Furthermore, he estimates the probability that an audited return will result in additional assessments being levied on the taxpayer is 0.60. What is the probability that a tax return selected at random will result in additional assessments being levied on the taxpayer?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
A tax specialist has estimated that the probability that a tax return selected at random will be audited is 0.04. Furthermore, he estimates the probability that an audited return will result in additional assessments being levied on the taxpayer is 0.60. What is the probability that a tax return selected at random will result in additional assessments being levied on the taxpayer?
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Ans: 0.6*0.04 = 0.024
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Cheers,
Stan H.
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