Question

If the annual proportion of erroneous income tax returns filed with the IRS can be looked upon as a random variable having a beta distribution with α = 2 and β = 9, what is the probability that in any given year there will be fewer than 10 percent erroneous returns?

Answer 1

The probability that in any given year there will be fewer than 10 percent erroneous returns is P(x≤0.1)=0.264.

Explanation:

For a beta distribution with α = 2 and β = 9, we need to use a calculator to compute the probabilities.

The probability that in any given year there will be fewer than 10 percent erroneous returns is P(x≤0.1)=0.264.