Decide Which Probability Distribution -Binomial, Geometric, or Poisson- Applies to the Question

question 68

Multiple Choice

Decide which probability distribution -binomial, geometric, or Poisson- applies to the question. You do not need to
answer the question.
-Given: The probability that a federal income tax return is filled out incorrectly with an error in favor of the taxpayer is 20%. Question: What is the probability that of the ten tax returns randomly selected for an audit,
Three returns will contain only errors favoring the taxpayer?

• A)binomial
• B)geometric
• C)Poisson

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Definitions:

Inflation

An overall uptick in price levels and a decline in the value of money.

Liberal Economist

An economist advocating for policies promoting free market principles, minimal government intervention, and individual liberties in economic matters.

Government Spending Cuts

Government Spending Cuts involve the reduction of public sector expenditure in an attempt to balance budgets and reduce deficits.

Multiplier

In economics, it refers to the factor by which gains in total output are greater than the change in spending that caused it.