Suppose 5% of all people filing the long income tax form seek deductions that they know are illegal, and an additional 2

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answerhappygod
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Suppose 5% of all people filing the long income tax form seek deductions that they know are illegal, and an additional 2

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Suppose 5% of all people filing the long income tax form seek
deductions that they know are illegal, and an additional 2%
incorrectly list deductions because they are unfamiliar with income
tax regulations. Of the 5% who are guilty of cheating, 81% will
deny knowledge of the error if confronted by an investigator. If
the filer of the long form is confronted with an unwarranted
deduction and he or she denies the knowledge of the error, what is
the probability that he or she is guilty? (Round your answer to
four decimal places.)
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