3
QuizMultiple Choice

Tax Returns

Question 3 • Financial Math - MA2007

If 20% of all manually filed returns contain errors, and 0.05% of all electronically filed returns contain errors, how much more likely is a manual filer to make an error than an electronic filer?

Answer
A
40,000 times more likely
B
4,000 times more likely
C
400 times more likely
D
40 times more likely

Explanation

Compare the two error rates by dividing 20% by 0.05%. Since 20 ÷ 0.05 = 400, a manual filer is 400 times more likely to make an error. The correct choice is “400 times more likely.”

AI-written and checked against the verified answer.

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