How does the Internal Revenue Service (IRS) decide on the percentage of income tax returns to audit for each state? Suppose they do it by randomly selecting 50 values from a Normal distribution with a mean equal to 1.25% and a standard deviation equal to 0.4%. (a) What is the probability that a particular state will have more than 2% of its income tax returns audited? (b) What is the probability that a state will have less than 1% of its income tax returns audited?
