apters 5-7 6 Help Save & Dottie\'s Tax Service specializes in federal tax return
ID: 3051327 • Letter: A
Question
apters 5-7 6 Help Save & Dottie's Tax Service specializes in federal tax returns for professtonal clients, such as physicians, dentists, accountants, and lawyers. A recent audit by the IRS of the returns she prepared indicated that an error was made on 10% of the returns she prepared last year. Assuming this rate continues into this year and she prepares 59 returns, what is the probability that she makes errors on a. More than 6 returns? (Round your a-score computation to 2 decimal places and final answer to 4 decimal places b. At least 6 returns? (Round your 2-score computation to 2 decimal places and final answer to 4 decimel places) cEty Round your ascore compuetion to 2 decimal places and final answer to 4 decimal places) 6 0Explanation / Answer
Solution:- Given that p = 10% = 0.10 , n = 59
= n*p = 59*0.10 = 5.9
= sqrt(n*p*q) = sqrt(59*0.10*0.90) = 2.3043
Z = (x - )/
a) P(X > 6) = P(Z > (6.5 - 5.9)/2.3043) = P(Z > 0.26) = 0.3974
The point 6 is extended between 5.5 and 6.5.so more than 6 returns means 6.5 should be used
b) P(X < 6) = P(Z < (5.5 - 5.9)/2.3043) = P(Z < -0.17) = 0.4325
c) P(X = 6) = P(X < 6) - P(X > 6) = 0.4325 - 0.3974 = 0.0351
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