Suppose that an IRS examiner correctly detects and flags 90% of all erroneous returns that he reviews. In addition, he mistakenly flags 2% of correct returns that he reviews. Suppose that about 20% of the tax returns he reviews contain errors. (a) What proportion of tax returns he reviews are flagged? (b) What proportion of tax returns he flagged actually contain errors?

Holt Mcdougal Larson Pre-algebra: Student Edition 2012
1st Edition
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Chapter11: Data Analysis And Probability
Section11.5: Interpreting Data
Problem 1C
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Suppose that an IRS examiner correctly detects and flags 90% of all erroneous returns that he reviews. In addition, he mistakenly flags 2% of correct returns that he reviews. Suppose that about 20% of the tax returns he reviews contain errors. (a) What proportion of tax returns he reviews are flagged? (b) What proportion of tax returns he flagged actually contain errors?
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