tax returns filed manually have a 20% chance of containing errors, while tax returns filed electronically…

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

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

Answer

Explanation:

Step1: Calculate number of manual errors

The number of manually - filed tax returns is 2.7 million = 2700000. The error rate for manual filing is 20% or 0.2. So the number of erroneous manually - filed returns is $2700000\times0.2 = 540000$.

Step2: Calculate number of electronic errors

The number of electronically - filed tax returns is 2.7 million = 2700000. The error rate for electronic filing is 0.05% or 0.0005. So the number of erroneous electronically - filed returns is $2700000\times0.0005=1350$.

Step3: Calculate the difference

Subtract the number of electronic errors from the number of manual errors: $540000 - 1350=538650$.

Answer:

B. 538,650