| University | Singapore University of Social Science (SUSS) |
| Subject | BUS105: Statistics |
Firms are increasingly asking applicants to submit to drug tests. Suppose that drug tests can identify a drug user 99% of the time. However, 2% of the time the test indicates a positive result although the applicant is not a drug user.
Based on past experiences, 5% of all applicants are drug users. a) What is the probability that a randomly selected applicant has tested positive for drug use? b) What is the probability that an applicant who has tested positive is not really a drug user? c) What is the probability that an applicant who has tested negative is really a drug user? d) In a group of 3 applicants with positive results, what is the probability one of them is really a drug user?
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