Find the Indicated Probability

question 66

Multiple Choice

Find the indicated probability
-A IRS auditor randomly selects 3 tax returns from 57 returns of which 6 contain errors. What is the probability that she selects none of those containing errors?

• A)0.7163
• B)0.0012
• C)0.0007
• D)0.7117

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Definitions:

Net Income

The amount of earnings left over after all expenses, including taxes and costs, have been deducted from total revenue; essentially, the company's profit.

Physical Count

An actual count of merchandise or inventory on hand, often conducted at the end of an accounting period to verify the accuracy of records.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as beginning inventory plus purchases minus cost of goods sold.

Net Realizable Value

Net Realizable Value is the estimated selling price of goods, minus the estimated costs of completion and necessary selling costs, used for inventory valuation and accounts receivable.