Refer to the Table Which Summarizes the Results of Testing

question 1

Multiple Choice

Refer to the table which summarizes the results of testing for a certain disease $\begin{array}{l|cc} & \begin{array}{l}\text { Positive } \\\text { Test Result }\end{array} & \begin{array}{l}\text { Negative } \\\text { Test Result }\end{array} \\\hline \begin{array}{l}\text { Subject has the disease } \\\text { Subject does not have the } \\\text { disease }\end{array} & 111 & 4 \\& 11 & 172\end{array}$

If one of the results is randomly selected, what is the probability that it is a false negative (test indicates the person does not have the disease when in fact they do) ? What does this probability suggest about the accuracy of the test?

• A) \(0.0369\); The probability of this error is low so the test is fairly accurate.
• B) \(0.0348\); The probability of this error is low so the test is fairly accurate.
• C) \(0.591\); The probability of this error is high so the test is not very accurate.
• D) \(0.0134\); The probability of this error is low so the test is fairly accurate.

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Definitions:

Activity Cost Pools

Groupings of individual costs based on the activities that drive them, used in activity-based costing to allocate costs more accurately.

Batch Set-Up

The process of preparing equipment and systems for manufacturing a particular batch of products, involving calibration, cleaning, and test runs.

Activity-based Costing

An accounting method that assigns costs to products or services based on the activities they require, aiming for more accurate cost information.

Activity-based Costing

A costing methodology that assigns overhead and indirect costs to specific activities, helping to more accurately determine the cost of products or services.