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5.3 Binomial distribution - university of calgary - base content  (Page 23/30)

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  • Card 23 / 30:
    The chance of an IRS audit for a tax return with over $25,000 in income is about 2% per year. We are interested in the expected number of audits a person with that income has in a 20-year period. Assume each year is independent.

    In words, define the random variable X .List the values that X may take on.Give the distribution of X . X ~ _____(_____,_____)How many audits are expected in a 20-year period?Find the probability that a person is not audited at all.Find the probability that a person is audited more than twice.

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Source:  OpenStax, Introduction to statistics i - stat 213 - university of calgary - ver2015revb. OpenStax CNX. Oct 21, 2015 Download for free at http://legacy.cnx.org/content/col11874/1.3
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