#### Question

One in 104 individual tax returns will be randomly selected to be audited by the IRS. Determine (a) The probability that an individual tax return will be audited. (b) The odds against an individual tax return being audited.

#### Solution

Verified#### Step 1

1 of 2a.) The probability that an individual tax return will be audited is

$P(audited~individual~tax~return)=\dfrac{1}{104}$

b.) Since $P(audited~individual~tax~return)=\dfrac{1}{104}$, then

$P(not~audited~individual~tax~return)=1-\dfrac{1}{104}=\dfrac{103}{104}$

Thus, the odds against an individual tax return being audited is given by:

$\dfrac{P(not~audited~individual~tax~return)}{P(audited~individual~tax~return)}=\dfrac{\dfrac{103}{104}}{\dfrac{1}{104}}=\dfrac{103}{1},$ or $103 : 1$

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