Disco Fever Is Randomly Found in One Half of One

question 90

Multiple Choice

Disco Fever is randomly found in one half of one percent of the general population.Testing a swatch of clothing for the presence of polyester is 99% effective in detecting the presence of this disease.The test also yields a false-positive in 4% of the cases where the disease is not present.What is the probability that the disease is present if the test result comes back positive?

• A)0.1106
• B)0.8894
• C)0.9600
• D)0.0400

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Definitions:

FIFO Costing

An inventory valuation method stating that the oldest inventory items are sold first, with costs of the oldest items being used to calculate profit.

Ending Inventory

The value of goods available for sale at the end of an accounting period.

LIFO Reserve

The difference between the cost of inventory calculated using the Last-In, First-Out method and the First-In, First-Out method.

FIFO Inventory Costs

An accounting method where the oldest inventory items are recorded as sold first.