SOLUTION: Suppose the probability of an IRS audit is 4.8 percent for U.S. taxpayers who file form 1040 and who earned $100,000 or more. (a) What are the odds that such a taxpayer will be

Question 1169815: Suppose the probability of an IRS audit is 4.8 percent for U.S. taxpayers who file form 1040 and who earned $100,000 or more.

(a) What are the odds that such a taxpayer will be audited? (Round your answers to the nearest whole number.)

Odds that a taxpayer will be audited 1 TO______.

(b) What are the odds against such a taxpayer being audited? (Round your answers to the nearest whole number.)

Odds against a taxpayer being audited ____TO 1

Answer by greenestamps(13200) (Show Source): You can put this solution on YOUR website!

Since the probability of being audited is 4.8%, the probability of NOT being audited is 100-4.8 = 95.2%.

That makes the odds of being audited 4.8:95.2, or about 0.05 to 1; and the odds of NOT being audited are 95.2:4.8, or about 20 to 1.

Probability OF = YES/TOTAL = YES/(YES+NO)

Odds OF = YES:NO

Odds AGAINST = NO:YES

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