Question

tax returns filed manually have a 20% chance of containing errors, while tax returns filed electronically have a 0.05% chance of containing the same. if 2.7 million tax returns are filed each way, how many more erroneous manually filed returns will there be than erroneous electronically filed returns?
a. 270,675
b. 538,650
c. 541,350
d. 269,325
please select the best answer from the choices provided

Explanation:

Step1: Calculate manual errors

Total tax returns: \(2.7\) million \( = 2700000\). Manual error rate: \(20\% = 0.2\).
Manual errors: \(2700000\times0.2 = 540000\).

Step2: Calculate electronic errors

Electronic error rate: \(0.05\% = 0.0005\).
Electronic errors: \(2700000\times0.0005 = 1350\).

Step3: Find the difference

Difference: \(540000 - 1350 = 538650\).

Answer:

b. 538,650