New Tax Accounting Clients. New legislation passed in 2017 by the U.S. Congress changed tax laws that affect how many people file their taxes in 2018 and beyond. These tax law changes will likely lead many people to seek tax advice from their accountants (The New York Times). Backen and Hayes LLC is an accounting firm in New York state. The accounting firm believes that it may have to hire additional accountants to assist with theincreased demand in tax advice for the upcoming tax season. Backen and Hayes LLC has developed the following probability distribution for x 5 number of new clients seeking tax advice. x f(x) 20 .05 25 .20 30 .25 35 .15 40 .15 45 .10 50 .10 a. Is this a valid probability distribution? Explain.b. What is the probability that Backen and Hayes LLC will obtain 40 or more new clients?c. What is the probability that Backen and Hayes LLC will obtain fewer than 35 new clients?d. Compute the expected value, variance, and standard deviation of x.
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
New Tax Accounting Clients. New legislation passed in 2017 by the U.S. Congress changed tax laws that affect how many people file their taxes in 2018 and beyond. These tax law changes will likely lead many people to seek tax advice from their accountants (The New York Times). Backen and Hayes LLC is an accounting firm in New York state. The accounting firm believes that it may have to hire additional accountants to assist with the
increased demand in tax advice for the upcoming tax season. Backen and Hayes LLC has developed the following
| x | f(x) |
| 20 | .05 |
| 25 | .20 |
| 30 | .25 |
| 35 | .15 |
| 40 | .15 |
| 45 | .10 |
| 50 | .10 |
a. Is this a valid probability distribution? Explain.
b. What is the probability that Backen and Hayes LLC will obtain 40 or more new clients?
c. What is the probability that Backen and Hayes LLC will obtain fewer than 35 new clients?
d. Compute the expected value, variance, and standard deviation of x.
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