Question

Generally, the IRS selects returns for examination through the use of mathematical models, including correlations and discriminant functions.

Answer 1

The random variable X represents the number of people audited in one year.

Step-by-step explanation:

The random variable X is defined as the number of people audited in one year out of a group of 100 people with tax returns over $25,000. In this case, X follows a Poisson distribution.