SOLUTION: Suppose the probability of an IRS audit is 2.1 percent for U.S. taxpayers who file form 1040 and who earned $100,000 or more. What are the odds that such a taxpayer will be audite

Question 1174148: Suppose the probability of an IRS audit is 2.1 percent for U.S. taxpayers who file form 1040 and who earned $100,000 or more.
What are the odds that such a taxpayer will be audited?
What are the odds against such a taxpayer being audited?
Answer by greenestamps(13198) (Show Source): You can put this solution on YOUR website!

P(audit): 2.1% = 0.021

Odds in favor: P(being audited):P(not being audited)
Odds of being audited: .021:(1-.021) = 21:779

Odds against: P(not being audited):P(being audited)
Odds against being audited: (1-.021):.021 = 779:21

NOTE: Odds for or against are often shown as fractions -- e.g., 21/779 and 779/21. However, in fraction form it looks like a probability; so I much prefer the forms 21:779 and 779:21.

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