Determining the income tax returns

Reference no: EM131011538

1. Income tax returns. In 2004, the Internal Revenue Service received 312,226,042 individual tax returns. Of these, 12,757,005 reported an adjusted gross income of at least $100,000, and 240,128 reported at least $1 million.27 If you know that a randomly chosen return shows an income of $100,000 or more, what is the conditional probability that the income is at least $1 million?

2. Conditional probabilities and independence. Using the information in Exercise 4.109, answer these questions.

(a) Given that a vehicle is imported, what is the conditional probability that it is a light truck?

(b) Are the events "vehicle is a light truck" and "vehicle is imported" independent? Justify your answer.

Reference no: EM131011538

Questions Cloud

Zero coupon bond-what is the current value of bond : Diane Carter is interested in buying a five-year zero coupon bond whose face value is $1,000. She understands that the market interest rate for similar investments is 9 percent. Assume annual coupon payments. What is the current value of this bond?

Comparing death theme in gilgamesh and ramayana : 800-word essay comparing DEATH theme in Gilgamesh and Ramayana

Find the probability of at least one offer : 1. Find the probability of at least one offer. What is the probability that Julie is offered at least one of the three jobs?

Transition from bean counter to strategic partner : Over the last 30 years, management accountants have made the transition from a “bean counter” to a “strategic partner.” The advent of technology has facilitated automation and recordkeeping. As such, the management accountant has been free to develop..

Determining the income tax returns : In 2004, the Internal Revenue Service received 312,226,042 individual tax returns. Of these, 12,757,005 reported an adjusted gross income of at least $100,000, and 240,128 reported at least $1 million.27 If you know that a randomly chosen return s..

Cash flow analysis is setting the bid price on a project : Another utilization of cash flow analysis is setting the bid price on a project. To calculate the bid price, we set the project NPV equal to zero and find the required price. Thus the bid price represents a financial break-even level for the project...

Evaluate the argument or a part of the argument : Your response will require you to evaluate the argument or a part of the argument in the article you select. You must take a stand in which you agree or disagree with the critic and explain why

Draw a venn diagram : Draw a Venn diagram that shows the relation between the events A and Bin Exercise 4.106. Indicate each of the following events on your diagram and use the information in Exercise 4.106 to calculate the probability of each event. Finally, describe..

Uses straight-line depreciation-What is the IRR of decision : A firm is considering an investment in a new machine with a price of $18.15 million to replace its existing machine. The current machine has a book value of $6.15 million and a market value of $4.65 million. Assume the company uses straight-line depr..

User Account

All Pages