Refer to the situation in Exercise 88. Suppose an employee is chosen randomly and that the employees
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In Exercise 88
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.
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Related Book For
Understanding Business Statistics
ISBN: 978-1118145258
1st edition
Authors: Stacey Jones, Tim Bergquist, Ned Freed
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