# Question: Bolton Securities is about to implement a drug testing procedure for

Bolton Securities is about to implement a drug-testing procedure for company employees. In a recent anonymous survey, 20% of Bolton’s employees admitted to using illegal drugs. The random drug testing procedure is not infallible. In fact, about 5% of the time it will produce a false positive —that is, if the person being tested is NOT a drug user, there is a 5% probability that the test will nevertheless identify that person as a drug user. The test also has a probability of .08 of producing a false negative —about 8% of the time a drug user will be identifed as a non user.

a. If an employee is selected at random, how likely is it that the drug test will identify the employee as a drug user?

b. If the test identifes the employee as a drug user, how likely is it that the employee actually is a drug user?

a. If an employee is selected at random, how likely is it that the drug test will identify the employee as a drug user?

b. If the test identifes the employee as a drug user, how likely is it that the employee actually is a drug user?

## Answer to relevant Questions

Refer to the situation in Exercise 88. Suppose an employee is chosen randomly and that the employee’s test identifes him/her as a drug user. Use Bayes’ theorem to revise the probability that the person chosen is actually ...A government study of personal bankruptcies looked at what the authors called the “trajectory” of two groups of individuals who had declared bankruptcy. One group was classifed as “on the way up.” These were ...Unit sales for Harper, Inc. over the last 10 days are as follows: 2, 2, 1, 0, 1, 1, 2, 3, 0, 1. a. If you pick a day at random, how likely is it those two units were sold on that day? b. If we define a random variable that ...In a given year, approximately 1% of all flights scheduled to depart from US airports are canceled. You select 10 flights at random. Use the binomial probability function to compute the probability that a. None of the fights ...Exercise 19 dealt with a study indicating that the commercial success rate for wells drilled with 3-D seismic data is 70%. You randomly select 30 drilling sites that are using this kind of data. Compute the In Exercise 19 A ...Post your question