   Chapter 7.5, Problem 30E

Chapter
Section
Textbook Problem

AUDITING TAX RETURNS A tax specialist has estimated that the probability that a tax return selected at random will be audited is .02. Furthermore, he estimates that the probability that an audited return will result in additional assessments being levied on the taxpayer is .60. What is the probability that a tax return selected at random will result in additional assessments being levied on the taxpayer?

To determine

To find:

The probability that a tax return selected at random will result in additional assessments being levied on the taxpayer.

Explanation

Given:

A tax specialist has estimated that the probability that a tax return selected at random will be audited is 0.02 and the probability that an audited return will result in additional assessments being levied on the taxpayer is 0.60.

Approach:

The expression for conditional probability is given by,

P(F|E)=P(FE)P(E)

Calculation:

E is the event that a tax return is selected at random will be audited.

P(E)=0.02

F is the event that additional assessments being levied on the tax payer.

The probability that an audited return will result in additional assessments being levied on the taxpayer is,

P(F|E)=0.60

The required probability is that a tax return selected at random will result in additional assessments being levied on the taxpayer is P(FE)

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Evaluate the integral. 0/4sectand

Calculus: Early Transcendentals

Find the mean, median, and mode for the following scores; 8, 7, 5, 7, 0, 10, 2, 4, 11, 7, 8, 7

Essentials of Statistics for The Behavioral Sciences (MindTap Course List)

Let f be the function defined by f(x) = 4x 3. Find f(4), f(14), f(0), f(a), and f(a + 1).

Applied Calculus for the Managerial, Life, and Social Sciences: A Brief Approach

The scalar projection of on is:

Study Guide for Stewart's Multivariable Calculus, 8th

True or False: The graph at the right is the graph of an even function.

Study Guide for Stewart's Single Variable Calculus: Early Transcendentals, 8th 