Suppose the Probability of an Athlete Taking a Certain Illegal

question 147

Multiple Choice

Suppose the probability of an athlete taking a certain illegal steroid is 10%. A test has been developed to detect this type of steroid and will yield either a positive or negative result. Given that the athlete has taken this steroid, the probability of a positive test result is 0.995. Given that the athlete has not taken this steroid, the probability of a negative test result is 0.992. Given that a positive test result has been observed for an athlete, what is the probability that they have taken this steroid?

• A) 0.0995
• B) 0.9928
• C) 0.9552
• D) 0.9325

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Definitions:

Positive Net Worth

The financial status where total assets exceed total liabilities.

Obvious Theft

A situation where an act of stealing is clear and unmistakable to any observer.

Audit

A systematic examination and verification of a company's financial records, performance, or compliance with legal requirements.

Qualified Opinion

An auditor's statement that accompanies a company's financial statements, indicating that most parts of the financial statements are accurate, but there are reservations.