Binomial Distribution (Optional) · Exercise 26
Let X = the number of games won in that upcoming month.
The chance of an IRS audit for a tax return reporting more than $25,000 in income is about 2 percent 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.
(a) In words, define the random variable X.
(b) List the values that X may take on.
(c) Give the distribution of X. X ~ _____(_____,_____)
(d) How many audits are expected in a 20-year period?
(e) Find the probability that a person is not audited at all.
(f) Find the probability that a person is audited more than twice.
OpenStax, Statistics · §4.3 Binomial Distribution (Optional) · Exercise 26
No hints for this one.
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