Question

Tax returns filled manually have a 20% chance of containing errors while tax returns filled electronically have a .05% chance of containing the same if 2.7 million tax returns are filed each way how many more erroneous manually filed returns will there be than erroneous electronically filed returns

Answer 1

538,650.

Explanation:

Number of erroneous manual returns = 20% of 2.7 million

= 0.20 * 2,700,00 = 540,000.

Number for electronically returned = 2,700,000 * 0.0005 = 1350.

Difference = 540,00 - 1350 = 538,650.

Answer 2

538,650

Explanation:

We must first find how many errors there will be if filed manually and if filed electronically

Manually: 2,700,000*20% or 2,700,000*.2

Answer: 540,000 errors

Electronically: 2,700,000*.05% or 2,700,000*.0005

Answer: 1,350 errors

We must then find the difference; 540,000-1,350=538,650