How does the IRS decide on the percentage of income tax returns to audit for each state? Suppose they do it by randomly selecting 50 values from a normal distribution with a mean equal to 1.25% and a standard deviation equal to 0.4%.
What is the probability that a particular state will have more than 2% of its income tax returns audited?
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What is the probability that a state will have less than 1% of its income tax returns audited?
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The Answer of How does the IRS decide on the percentage of income tax returns to audit for each state? Suppose they do it by randomly selecting 50 values from a normal distribution with a mean equal to 1.25% and a standard deviation equal to 0.4%.
What is the probability that a particular state will have more than 2% of its income tax returns audited?
______________
What is the probability that a state will have less than 1% of its income tax returns audited?
______________

How Does the IRS Decide on the Percentage of Income