Answer the below questions. No more that 3 pages. Explain and show each calculation.
Acme Manufacturing Company requires all of its 5000 employees to take a drug test. Suppose 5% of the employees actually use drugs (although the company does not know this number). The drug test is 96% accurate.
How many of Acme’s employees use drugs?
How many of the employees who use drugs get a positive test result?
How many of the employees who do not use drugs get a positive test result?
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?
State a conclusion about the accuracy of the test.
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