Patti, Emilie, and Carla are debating the answer to part (d) of problem 2-26. Patti wrote. Carla thinks that the answer is. Emilie is convinced that the answer is. Discuss with your team how each person might have arrived at her answer. Who do you think is correct? When you decide, write an explanation on your paper and justify your answer.

a) The odds that such a taxpayer will be audited is 4%.

b) The odds against such a taxpayer being audited is 96%.

Step-by-step explanation:

a) Data and Calculations:

The probability of an IRS audit = 3.8% for U.S. taxpayers who file form 1040 and earned $100,000.

This is the same as the odds that such a taxpayer will be audited.  Odds is the likelihood or chance that an event will take place.

b) The probability of not being audited is 100 - 3.8% = 96.2%

The odd against being audited is the likelihood or chance that an event will not take place.