On average 15 minutes elapse between discoveries of fraudule

On average, 15 minutes elapse between discoveries of fraudulent corporate tax returns in a certain IRS office. What is the probability that less than 30 minutes will elapse before the next fraudulent corporate tax return is discovered?

	.30
	.50
	.80
	.15

On average, 15 minutes elapse between discoveries of fraudulent corporate tax returns in a certain IRS office. What is the probability that less than 30 minutes will elapse before the next fraudulent corporate tax return is discovered? Given the contingency table shown here, find the probability P(V), that is, the probability of the complement of V.

Solution

Given X follows Exponential distribution with mean=15

F(x)=1-exp(-x/15) for x>0

So the probability that less than 30 minutes will elapse before the next fraudulent corporate tax return is discovered is

P(X<30) = 1-exp(-30/15) =0.8646647

-------------------------------------------------------------------------------------------------------------

So the probability P(V