Logo
Home Study Material Contact Search
AI Chat FREE
  1. mathematics
  2. statistics
  3. in the current tax year, suppose that 3% of the mi

In the current tax year, suppose that 3% of the millions of individual tax returns have...

50.1K

Verified Solution

Question

Statistics

In the current tax year, suppose that 3% of the millions ofindividual tax returns have errors or are fraudulent. Althoughthese errors are often well concealed, let’s suppose that a throughIRS audit (done by you of course) will uncover them. If a random100 tax returns are audited what is the probability that the IRSwill uncover at most 4 fraudulent returns? Create an Excelspreadsheet that may give you an idea about this probability. Hint:Use the RAND() function for every tax return. The RAND() functiongenerates a random number between 0 and 1. If the RAND() functiongives you a number that is less than or equal to 0.03 then you canassume that the return contains error. Otherwise you can assumethat the return does not contain any error. You can press F9 onyour keyboard to regenerate a new instance. You may have to createenough instances to come up with a good approximation of theprobability value. You can also find the exact probability usingBinomial Distribution. What does it mean if an IRS auditor uncoversno more than 3 fraudulent/erroneous returns for every 100 taxreturns?

Please in Excel.

Answer & Explanation Solved by verified expert
3.6 Ratings (499 Votes)
If a random 100 tax returns are    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

B What is this process A AUGUUA UUA C D A A U F LL...

Biology
Q

sign In the volue Ques Determine whether the underl In a national survey of high...

Statistics
Q

You probably heard about deep-sea diving with suits in which the divers breath fluids. The movie...

Chemistry
Q

Brian and Company is a consulting group that offers fool-proof pricing and revenue optimization Service guaranteed...

General Management
Q

e are 3 Which of the following is an anticodon sequence found on a tRNA...

Biology
Q

A restaurant offers a $12 dinner special that has 5 choices for an appetizer, 13...

Basic Math
Q

a h Determine the maximum normal stress or in the beams shown here using the...

Statistics
Q

Find y 5 dy dx

Calculus
Q

Find the angle of least nonnegative measure 8c that is coterminal with 0 525

Algebra
Q

1 Chapter 5 Individual Homework Assignment Note: Please type your name, section number, and CWID...

Accounting
Q

From regular business operations (and without considering any distributions) Mega Corp., a C corporation, would...

Accounting
Q

his total gross pay for the week (in \$)? $ x

Accounting