Question 1151955: Suppose the probability of an irs audit is 1.9 percent for U.s. taxpayers who file form 1040 and who earned $100,000 or more. odds that such a tax payer will be audited are 1 to ______ . Odds against a tax payer being audited _____ to 1
Answer by greenestamps(13198)   (Show Source):
You can put this solution on YOUR website!
Probability compares "good" outcomes to all possible outcomes.
P(audit) = 1.9% = .019 = 19/1000 means 19 out of every 1000 taxpayers will be audited.
So of every 1000 taxpayers, 19 will be audited and 981 will not.
Odds IN FAVOR OF compares good outcomes to bad outcomes; odds AGAINST compares bad outcomes to good outcomes. So
The odds in favor of getting audited are 19:981; the odds against getting audited are 981:19.
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If the answers are given in the form 1:x or x:1, then simply divide both numbers in the odds I showed by 19:
odds in favor = 19:981 = 1:981/19 or 1:51.63 (approximately) or, to the nearest whole number, 1:52
odds against = 981:19 = 51.63:1 (approximately), or 52:1
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