Find the expected number of audits for individuals

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Reference no: EM13136797

The Hemingway Financial Company prepares tax returns for individuals. According to the Internal Revenue Service, individuals making $50,000 - $ 75,000 are audited at a rate of 3%. The Hemingway Company prepares six tax returns for individuals in that tax bracket, and three of them are audited.

Find the probability that when 6 people making $50,000 - $75,000 are randomly selected, exactly 3 of them are audited?

What is the expected number of audits for the 6 randomly selected individuals?

What is the standard deviation for the number of audits for the 6 randomly selected individuals?

Reference no: EM13136797

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