Is your question missing the %?
Is your question this one below?
If Not Pls tell me..
For the fiscal year 2007, a tax authority audited 1.91% of individual tax returns with income of $100,000 or more. Suppose this percentage stays the same for the current tax year. What is the probability that two randomly selected returns with income of $100,000 or more will be audited?
Answer:
The probability of auditing two individual tax return worth $100,000 or more is 0.00036481
The probability of auditing an individual tax return which is $100,000 or more = 1.91% = 0.0191
Therefore, the probability of auditing any tax return with $100,000 or more will be 0.0191
Thus, the probability of auditing two tax returns with $100,000 or more will be :
First event = 0.0191
Second event = 0.0191
So, the resulting probability is (0.0191 × 0.0191) = 0.00036481
Therefore, the probability of auditing individual tax returns of $100,000 or more is 0.00036481
