Refer to the Table Which Summarizes the Results of Testing

question 112

Multiple Choice

Refer to the table which summarizes the results of testing for a certain disease. $$\begin{array} { l | c c } & \text { Positive Test Result } & \text { Negative Test Result } \\\hline \text { Subject has the disease } & 119 & 6 \\\text { Subject does not have the disease } & 13 & 177\end{array}$$
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) 0.0413; The probability of this error is low so the test is fairly accurate.
• B) 0.581; The probability of this error is high so the test is not very accurate.
• C) 0.0190; The probability of this error is low so the test is fairly accurate.
• D) 0.0480; The probability of this error is low so the test is fairly accurate.

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Definitions:

Allocation Base

A criterion or standard used to distribute costs among different cost objects, often used in the process of overhead allocation.

Single Cost Pool

A simplified accounting method that aggregates all costs into one category.

Activity-based Costing

An accounting method that assigns costs to products or services based on the activities and resources that go into producing them, providing precise cost information.

First Stage

The initial phase in a process or development where foundational elements are established.