The Internal Revenue Service audits a random sample of 1 of
The Internal Revenue Service audits a random sample of 1% of tax returns where the gross income exceeds $1,00,000. If a tax lawyer assists in the completion of 21 such returns, what is the mean and the standard deviation of the number of tax returns that arc audited. Round your answer to 4 decimal places. The mean is The standard deviation is
Solution
mean is 0.01*100,000 = 1000
standard deviation = srqt(0.01*100,000*0.99) = 31.46
