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)0.0518
B)0.0427
C)0.1005
D)0.1523

Question

Quizplus · Accepted Answer

The given situation follows a Poisson distribution with λ = 4.7 (average number of fraudulent returns discovered per day). Using the Poisson probability formula, we can find the probability of discovering fewer than two fraudulent returns:
P(X < 2) = e^(-λ) * Σ(λ^k / k!), k=0 to 1
P(X < 2) = e^(-4.7) * [(4.7^0 / 0!) + (4.7^1 / 1!)]
P(X < 2) = 0.0518 (rounded to 4 decimal places)
Therefore, the best choice is A.

On Average,an IRS Auditor Discovers 4