Suppose the probability of an IRS audit is 5.2 percent for U.S. taxpayers who file form 1040 and who earned $100,000 or more.

Question

A) What are the odds that such a taxpayer will be audited? _____ to _____

B) What are the odds against such a taxpayer being audited? _____ to _____

Answer 1

odds = p/(1-p) where p is probability. the revers odds are just given the other way. If o = .6, the odds are .6 to 1. The reverse odds are 1:.6 or 1/.6 to 1