Question: in the current tax year, suppose that 5% of the millions of individual tax returns are fraudulent. That is, they contain errors that were purposely made to cheat the government.

1. Although these errors are often well concealed, in this part of the question let’s assume that a thorough IRS audit will uncover them. If this is the case, and a random sample ot‘250 tax returns is audited, what is the probability that the IRS will uncover at least 15 fraudulent returns? Place your answer in the space below.
2. Now, in this part of the problem, let’s assume that there is only a 90% chance that a given fraudulent return will be identified if it is audited by the IRS. If this is the case, and a random sample of 250 tax returns is audited, what is the probability that the [RS will uncover at least 15 fraudulent returns? Place your answer in the space below.

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