Computer screening of tax returns is used to flag tax forms that need to be investigated further. The method correctly flags 85% of all erroneous returns and incorrectly flags 5% of error-free returns. The pool of tax returns submitted for computer screening contains 15% with errors. (a) A tax return is randomly screened. What is the probability that it is flagged by the computer and has an error? (b) What is the probability that a random tax form is flagged by the computer? (c) If a tax return is not flagged by the computer, what is the probability that it is correct?

Computer screening of tax returns is used to flag tax forms that need to be investigated further. The method correctly flags 85% of all erroneous returns and incorrectly flags 5% of error-free returns. The pool of tax returns submitted for computer screening contains 15% with errors. (a) A tax return is randomly screened. What is the probability that it is flagged by the computer and has an error? (b) What is the probability that a random tax form is flagged by the computer? (c) If a tax return is not flagged by the computer, what is the probability that it is correct?

College Algebra

10th Edition

ISBN:9781337282291

Author:Ron Larson

Publisher:Ron Larson

Chapter8: Sequences, Series,and Probability

Section8.7: Probability

Problem 11ECP: A manufacturer has determined that a machine averages one faulty unit for every 500 it produces....

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