An ice cream company wishes to use a new red dye to enhance the color in its strawberry ice cream. The U.S. Food and Drug Administration (FDA) requires the dye to be tested for cancer-producing potential using laboratory rats. The results of one test on 1,000 rats are summarized in the following table:

(A) Convert the table into a probability table by dividing each entry by 1,000.

(B) Are “developing cancer” and “eating red dye” independent events?

(C) Should the FDA approve or ban the use of the dye? Explain why or why not using P(C |R) and P(C).

Transcribed Image Text:

Cancer No Cancer C' Totals Ate Red Dye R 60 440 500 No Red Dye R' 20 480 500 Totals 80 920 1,000