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

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Efficient Output

The level of production that maximizes a firm's profits while minimizing its costs, often associated with where marginal cost equals marginal revenue.

Lowest Price

The minimum cost at which a product or service can be bought, often sought after in competitive markets.

Total Profits

The final financial gain from a business operation after subtracting all expenses, taxes, and costs from total revenues.

Firm

A business organization, such as a corporation or partnership, engaged in commercial, industrial, or professional activities.