On average, 15 minutes elapse between discoveries of fraudulent corporate tax returns in a certain IRS office. What is the probability that less than 30 minutes will elapse before the next fraudulent corporate tax return is discovered?
A).1353
B).6044
C).7389
D).8647

Question

Quizplus · Accepted Answer

The time between discoveries of fraudulent corporate tax returns follows an exponential distribution with a mean of 15 minutes. The probability that less than 30 minutes will elapse is given by 1 - e^(-30/15) = 1 - e^(-2) ≈ 0.8647.

On Average, 15 Minutes Elapse Between Discoveries of Fraudulent Corporate