(13.36) Here is the distribution of the adjusted gross income (in thousands of d
ID: 3132440 • Letter: #
Question
(13.36) Here is the distribution of the adjusted gross income (in thousands of dollars) reported on individual federal income tax returns in 2011:
Step 1:
What is the probability that a randomly chosen return shows an adjusted gross income of $30,000 or more? Your answer should be accurate to 3 decimal places.
Step 2:
Given that a return shows an income of at least $30,000, what is the conditional probability that the income is at least $75,000? (Give your answer to 3 decimal places.)
(13.36) Here is the distribution of the adjusted gross income (in thousands of dollars) reported on individual federal income tax returns in 2011:
Step 1:
What is the probability that a randomly chosen return shows an adjusted gross income of $30,000 or more? Your answer should be accurate to 3 decimal places.
Step 2:
Given that a return shows an income of at least $30,000, what is the conditional probability that the income is at least $75,000? (Give your answer to 3 decimal places.)
Explanation / Answer
a) Apply cumulative probability to determine the required value.
0.310+0.181=0.030=0.521
b. The required probbaility for atleast 30,000 denotes probbaility of 30,000 and more but condition has been imposed as income is at least 75,000. Therefore, required probbaility is 0.310.