Question

Because of her past convictions for mail fraud and forgery, Jody has a 30% chance each year of having her tax returns audited. What is the probability that she will escape detection for at least three years? Assume that she exaggerates, distorts, misrepresents, lies, and cheats every year. Larsen, Richard J.; Marx, Morris L.. An Introduction to Mathematical Statistics and Its Applications (Page 259). Pearson Education. Kindle Edition.

Answer 1

108

Explanation:

Answer 2

The probability that she will escape detection for at least three years is P=0.343.

Explanation:

If Jody has a 30% chance each year of having her tax returns audited, she also has 70% chance each year of escaping detection.

The probability of this happening 3 years in a row is:

`P_n=q^n=0.7^3=0.343`