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)0.1353
B)0.6044
C)0.7389
D)0.8647

Question

Quizplus · Accepted Answer

The situation can be modeled using an exponential distribution with a mean (λ) of 15 minutes. The probability that less than 30 minutes will elapse is given by the cumulative distribution function (CDF) of the exponential distribution: P(X < 30) = 1 - e^(-30/15) = 1 - e^(-2) ≈ 0.8647.

On Average,15 Minutes Elapse Between Discoveries of Fraudulent Corporate Tax