30. IRS Audits The Hemingway Financial Company prepares tax returns for individuals. (Motto: "We also write great fiction.") According to the Internal Revenue Service, in- dividuals making $25,000-$50,000 are audited at a rate of 1%. The Hemingway Company prepares five tax returns for individuals in that tax bracket, and three of them are audited. a. Find the probability that when 5 people making $25,000-$50,000 are randomly selected, exactly 3 of them are audited. b. Find the probability that at least 3 people are audited. c. Based on the preceding results, what can you conclude about the Hemingway cus- tomers? Are they just unlucky, or are they being targeted for audits? 31. Acceptance Sampling The Medassist Pharmaceutical Company receives large ship- ments of aspirin tablets and uses this acceptance sampling plan: Randomly select and test 24 tablets, then accept the whole batch if there is only one or none that doesn't meet the required specifications. If a particular shipment of thousands of aspirin tablets actually has a 4% rate of defects, what is the probability that this whole ship- ment will be accepted? 32. Affirmative Action Programs A study was conducted to determine whether there were significant differences between medical students admitted through special pro- grams (such as affirmative action) and medical students admitted through the regular admissions criteria. It was found that the graduation rate was 94% for the medical stu- dents admitted through special programs (based on data from the Journal of the American Medical Association). a. If 10 of the students from the special programs are randomly selected, find the probability that at least 9 of them graduated. b. Would it be unusual to randomly select 10 students from the special programs and get only 7 that graduate? Why or why not?

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