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Statistics : Hypergeometric Distributions

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IRS Audits.

A sample of 25 returns is selected from young couples between the ages of 20
and 35 who had an adjusted gross income of more than $100,000. Of these 25 returns
five had charitable contributions of more than $1,000. Suppose four of these returns are
selected for a comprehensive audit.

a. Explain why the hypergeometric distribution is appropriate.
b. What is the probability exactly one of the four audited had a charitable deduction of
more than $1,000?
c. What is the probability at least one of the audited returns had a charitable contribution
of more than $1,000?

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Solution Summary

Hypergeometric distributions are examined. A complete, neat and step-by-step solution is provided in the attached file.

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(a) Here, we have a sequence of 2 draws from a finite population without replacement. Therefore, hyper geometric distribution is ...

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