Question 228505: I am working with probability with statistics. My homework is asking what is the probability that two randomly selected tax returns with an income of $100,000 or more will not be audited. It give the information that 1.53% of individuals tax returns with incomes of 100,000 or more were audited. Please help!
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! I am working with probability with statistics. My homework is asking what is the probability that two randomly selected tax returns with an income of $100,000 or more will not be audited. It give the information that 1.53% of individuals tax returns with incomes of 100,000 or more were audited.
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It's a binomial problem with n=2 ; p = 0.0153 ; q = 0.9847
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P(2 not audited) = 0.9847^2 = 0.9696..
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Cheers,
Stan H.
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