Poisson Distribution (Optional) · Exercise 22
The chance of an IRS audit for a tax return reporting more than $25,000 in income is about 2 percent per year. Suppose that 100 people with tax returns over $25,000 are randomly picked. We are interested in the number of people audited in one year. Use a Poisson distribution to anwer the following questions.
(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 are expected to be audited?
(e) Find the probability that no one was audited.
(f) Find the probability that at least three were audited.
OpenStax, Statistics · §4.6 Poisson Distribution (Optional) · Exercise 22
No hints for this one.
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