Reference no: EM132723042

Problem 1: Find the indicated probability. The IRS has a group of 45 tax returns, 15 of which contain errors. An IRS auditor randomly selects 3 tax returns from this group. What is the probability the auditor selects none of those containing errors? Round to four decimal places.

Option 1: 0.2861

Option 2: 0.037

Option 3: 0.0321

Option 4: 0.2963

Problem 2: A firm uses trend projection and seasonal factors to simulate sales for a given time period. It assigns "0" if sales fall, "1" if sales are steady, "2" if sales rise moderately, and "3" if sales rise a lot. The simulator generates the following output.

0 1 0 2 2 0 0 1 2 0 2 0 2 0 2 2 1 2 0 1 2 2 2 0 3 0 0 2 1 2 1

Estimate the probability that sales will remain steady.

Option 1: 0.125

Option 2: 0.194

Option 3: 0.258

Option 4: 0.412