IRS Audits: The Hemingway Financial Company prepares tax returns for individuals. (Motto: “We also write great fiction.”) According to the Internal Revenue Service, individuals making $25,000--$50,000 are audited at a rate of 1%. The Hemingway Company prepares tax returns for ten individuals in that tax bracket, and four of them are audited. Find the probability that when 10 people making $25,000--$50,000 are randomly selected, exactly 4 of them are audited. ___________________Find the probability that at least four are audited. _________________Based on the preceding results, what can you conclude about the Hemingway customers? Are they just unlucky, or are they being targeted for audits?

Name: IRS Audits: The Hemingway Financial Company prepares tax returns for i
Uploaded: 2024-03-20T07:06:41.000Z
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Description: IRS Audits: The Hemingway Financial Company prepares tax returns for individuals. (Motto: “We also write great fiction.”) According to the Internal Revenue Service, individuals making $25,000--$50,000 are audited at a rate of 1%. The Hemingway Compan

Given,Probability of a person being audited P= 0.01Here it is Binomial distribution For a binomial…

Answered: Find the probability that when 10…

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IRS Audits: The Hemingway Financial Company prepares tax returns for individuals. (Motto: “We also write great fiction.”) According to the Internal Revenue Service, individuals making $25,000--$50,000 are audited at a rate of 1%. The Hemingway Company prepares tax returns for ten individuals in that tax bracket, and four of them are audited.
Find the probability that when 10 people making $25,000--$50,000 are randomly selected, exactly 4 of them are audited. ___________________
Find the probability that at least four are audited. _________________
Based on the preceding results, what can you conclude about the Hemingway customers? Are they just unlucky, or are they being targeted for audits?

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