The hemingway financial company prepares tax returns for individuals. (motto: “we also write great fiction.”) according to the internal revenue service, individuals making $25,000$50,000 are audited at a rate of 1%. the hemingway company prepares five tax returns for individuals in that tax bracket, and three of them are audited.
a. find the probability that when 5 people making $25,000$50,000 are randomly selected, exactly 3 of them are audited.
b. find the probability that at least 3 people are audited.
c. based on the preceding results, what can you conclude about the hemingway customers? are they just unlucky, or are they being targeted for audits?