Audits and Pet Ownership According to Internal Revenue Service records, 6.42% of all household tax returns are audited. According to the Humane Society, 39% of all households own a dog. Assuming dog ownership and audits are independent events, what is the probability a randomly selected household is audited and owns a dog?
Step 1 of 5) Audits and Pet Ownership According to Internal Revenue Service records, 6.42% of all household tax returns are audited. According to the Humane Society, 39% of all households own a dog. Assuming dog ownership and audits are independent events, what is the probability a randomly selected household is audited and owns a dog Solution Using Formula (2) Step 1 See Table 10. Column 1 lists the observations in the data set, and Column 2 contains the values in column 1 squared. Look at Table 9 in Example 3. The farther an observation is from the mean, 79, the larger the squared deviation. For example, because the second observation, 77, is not “far” from 79, the squared deviation, 4, is not large. However, the fifth observation, 62, is farther from 79, so the squared deviation, 289, is much larger. So, if a data set has many observations that are “far” from the mean, the sum of the squared deviations will be large, and therefore the standard deviation will be large. Now let’s look at the definition of the sample standard deviation.
