MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN: 9781119256830
Author: Amos Gilat
Publisher: John Wiley & Sons Inc
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**Title: IRS Study on Charitable Contributions: Probability Analysis**

The Internal Revenue Service is examining the category of charitable contributions. A sample of 34 tax returns has been selected from young couples between the ages of 20 and 35, all of whom have an adjusted gross income exceeding $100,000. Out of these 34 returns, 8 exhibited charitable contributions greater than $1,000. Suppose 7 of these returns are chosen for a meticulous audit.

**a. Explanation for Hypergeometric Distribution**

To determine why the hypergeometric distribution is suitable, consider the following:

- You are sampling a small population without replacement.

(Option selected: • you are sampling a small population without replacement.)

**b. Probability of Exactly One Audited Return Exceeding $1,000**

Calculate the probability that exactly one of the seven audited returns showed a charitable deduction of more than $1,000. Ensure your answer is rounded to four decimal places.

\[ \text{Probability:} \, \_\_\_\_ \]

**c. Probability of At Least One Audited Return Exceeding $1,000**

Determine the probability that at least one of the audited returns had a charitable contribution of more than $1,000. Ensure your answer is rounded to four decimal places.

\[ \text{Probability:} \, \_\_\_\_ \]

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Transcribed Image Text:**Title: IRS Study on Charitable Contributions: Probability Analysis** The Internal Revenue Service is examining the category of charitable contributions. A sample of 34 tax returns has been selected from young couples between the ages of 20 and 35, all of whom have an adjusted gross income exceeding $100,000. Out of these 34 returns, 8 exhibited charitable contributions greater than $1,000. Suppose 7 of these returns are chosen for a meticulous audit. **a. Explanation for Hypergeometric Distribution** To determine why the hypergeometric distribution is suitable, consider the following: - You are sampling a small population without replacement. (Option selected: • you are sampling a small population without replacement.) **b. Probability of Exactly One Audited Return Exceeding $1,000** Calculate the probability that exactly one of the seven audited returns showed a charitable deduction of more than $1,000. Ensure your answer is rounded to four decimal places. \[ \text{Probability:} \, \_\_\_\_ \] **c. Probability of At Least One Audited Return Exceeding $1,000** Determine the probability that at least one of the audited returns had a charitable contribution of more than $1,000. Ensure your answer is rounded to four decimal places. \[ \text{Probability:} \, \_\_\_\_ \] **Navigation:** - [Prev](#) - 13 of 17 - [Next](#) **Help Section:** For additional assistance or clarification on calculations, please refer to our statistical guides or contact a math tutor through our educational resource network.
Expert Solution
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Step 1

The question is about discrete probability distribution

Given :

Sample no. of returns selected from young couples ( N ) = 34

No. of returns selected for a comprehensive audit ( n ) = 7

No. of returns has charitable contribution from N ( r ) = 8

 

To find :

a ) Explain why hypergeometric dist. is appropriate

b ) Prob. that exactly 1 of the 7 audited had deduction of more than $1000

c ) Prob. that at least 1 of the 7 audited had contribution of more than $1000

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