Question

Nobody likes paying taxes, but this is not the way to get out of it! It is believed that 21% of all taxpayers intentionally claim some deductions to which they are not entitled. If 5% of all taxpayers both intentionally claim extra deductions and deny such when audited, find the probability that a taxpayer who does take extra deductions intentionally will deny it. (Give your answer correct to two decimal places.)

Answer 1

Well in total there are 21/100 percent of people that will clain some deduction falsely.....out of that 21 there are 5% who also lie about it

so 16/100 percent of people will lie about claiming wrongfully and do it....which is .16 or 16 percent of all taxpayers...Anyone correct me if I'm wrong