Suppose that 1% of all tax returns are audited by the IRS.If two tax returns are randomly selected, what is the probability that both will be audited? (Assume that they are selected with replacement; that is, it is possible for the same tax return to be selected twice).
A)0.01%
B).1%
C)1%
D)2%
E)5%

Question

Quizplus · Accepted Answer

The probability of selecting an audited tax return is 0.01. Since the selections are made with replacement, the probability of selecting an audited tax return on the second selection is also 0.01. The probability of both selections being audited is 0.01 * 0.01 = 0.0001, or 0.01%.

Suppose That 1% of All Tax Returns Are Audited by the IRS.If