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Probability Statistics Question - 3 parts Job Applicants: Job applicants in both the public and private sector are often nding that pre-employrnent drug testing is

Probability Statistics Question - 3 parts

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Job Applicants: Job applicants in both the public and private sector are often nding that pre-employrnent drug testing is a requirement. The Society for Human Resource Management found that 71% of larger orga- nizations (25,000+ employees) require drug testing of new job applicants. From the applicants perspective, one primary concern with drug testing is a false-positive result. A false-positive is an indication of drug use when the individual has indeed not used drugs. Beyond cost considerations, there are issues of defamation and wrongful accusations. From the employers perspective, one primary concern with drug testing is a false- negative result. A false-negative is where there is no indication of drug use when the individual has indeed used drugs. One company uses a cheaper and less accurate test The following is information about the accuracy (or lack thereof) for this test. 0 3% of applicants actually do use drugs. 0 Given an individual is using drugs (subset of only drug users) the test returns a positive test result only 98% of the time. 0 Given an individual is not using drugs (subset of only non-drug users), the test returns a negative test result 95% of the time. (a) What is the probability any applicant has a positive test result? (b) What is the probability a randomly selected applicant uses drugs and goes through the screening process undetected? (c) One applicant has a positive test result. Given this information what is the probability this applicant actually does not use drugs

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