Of All Individual Tax Returns, 37 Percent Include Errors Made

question 94

Multiple Choice

Of all individual tax returns, 37 percent include errors made by the taxpayer. If IRS examiners are assigned randomly selected returns in batches of 12, find the mean and standard deviation for the number of erroneous returns per batch.

• A) μ = 2.80, σ = 1.67
• B) μ = 4.44, σ = 1.67
• C) μ = 4.44, σ = 2.80
• D) μ = 7.56, σ = 2.80

---

Definitions:

Long-Run Equilibrium

A state in economic models where all factors of production can be adjusted, and no economic forces are prompting change, resulting in stable prices, output, and resource allocation.

Club Meeting

An organized gathering of members of a club or organization, typically for discussing matters of common interest.

Attendance

The act of being present at a location or event, often tracked for purposes such as education, employment, or participation in activities.

Number

An entity employed in mathematics for counting, measuring, and naming purposes.