The Internal Revenue Service is studying the category of charitable contribution

Question

The Internal Revenue Service is studying the category of charitable contributions. A sample of 24 returns is selected from young couples between the ages of 20 and 35 who had an adjusted gross income of more than $100,000. Of these 24 returns, 8 had charitable contributions of more than $1,000. Suppose 7 of these returns are selected for a comprehensive audit.

What is the probability exactly one of the seven audited had a charitable deduction of more than $1,000? (Round your answer to 4 decimal places.)

What is the probability at least one of the audited returns had a charitable contribution of more than $1,000? (Round your answer to 4 decimal places.)

What is the probability exactly one of the seven audited had a charitable deduction of more than $1,000? (Round your answer to 4 decimal places.)

What is the probability at least one of the audited returns had a charitable contribution of more than $1,000? (Round your answer to 4 decimal places.)

Explanation / Answer

1. prob is (8C1) (16C6) / (24C7) = 8 (8008) / 346,104=.1851
2. find prob. for X=0 and subtract from 1.
(8C0) (16C7) / (24C7) = 11,440 / 346,104=.0331, and then 1-.0331=.9669

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