Acme Manufacturing Company requires all of its 200,000 employees to take a drug test. Suppose 3% of the employees actually use drugs (although the company does not know this number). The drug test is 98.5% accurate.

1. How many of Acme's employees use drugs?

2. How many of the employees are getting incorrect test results?

3. How many of the employees who use drugs get a positive test result?

4. How many of the employees who do not use drugs get a positive test result?

5. Of the employees who get a positive test result, how many of them use drugs? Convert this to a percentage: What percent of people who get a positive result actually use drugs?

6. Of the employees who test negative, how many of them use drugs? Convert this to a percentage to find what percent of people who test negative who use drugs.

7. How many of Acme's employees will be falsely accused of doing drugs? Convert that to a percentage: What percent of Acme employees will be falsely accused of doing drugs?

8. State a conclusion about the accuracy of the test. (Ex. Is the test as accurate as it claims? Why or why not? Use your values to support your conclusions. )

HINT: remember "conditional probabilities"... ask yourself in each part if it's a conditional or not. If you're unsure go back to the discussion and look at the examples we talked about (or will talk about ) there.

**Reminder! Be sure to explain the steps you take in finding your answers. Show the formulas / equations, show your "math" working through the formulas and write out in words a description of the steps you're taking. Showing your work is good, but only part of the write up process, be sure to include written descriptions of your work and detailed explanations of the math concepts as well. We don't expect you to understand all the "whys" fully, but we do expect you'll make an attempt at explaining the "whys" behind the problems.