On average, an IRS auditor discovers 4.7 fraudulent income tax returns per day. On a randomly chosen day, what is the probability that she discovers fewer than two?
A).0518
B).0427
C).1005
D).1523

Question

Quizplus · Accepted Answer

The scenario describes a Poisson distribution with a mean ($\lambda$) of 4.7 fraudulent returns per day. The probability of observing fewer than two fraudulent returns ($k < 2$) is the sum of the probabilities of observing 0 and 1 fraudulent returns. Using the Poisson probability formula $P(k; \lambda) = \frac{e^{-\lambda} \lambda^k}{k!}$, we calculate $P(0; 4.7) + P(1; 4.7)$. This calculation results in a value that matches choice A, indicating a misunderstanding or a mistake in the calculation process provided in the options.

On Average, an IRS Auditor Discovers 4