Some Employers Use Lie Detector Tests to Screen Job Applicants

question 6

Multiple Choice

Some employers use lie detector tests to screen job applicants. Lie detector tests are not completely reliable. Suppose that in a lie detector test, 65% of lies are identified as lies and
That 14% of true statements are also identified as lies. A company gives its job applicants a
Polygraph test, asking "Did you tell the truth on your job application?" Suppose that 93% of
The job applicants tell the truth during the polygraph test. What is the probability that a person
Who fails the test was actually telling the truth?

• A)0.259
• B)0.349
• C)0.14
• D)0.741

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Definitions:

Operating Cycle

The period it takes for a business to buy inventory, sell it to customers, and collect the cash from these sales.

Credit Sales

Revenues earned by selling goods or services that are paid for over time under agreed payment terms, rather than paid in full upfront.

COGS

Acronym for Cost of Goods Sold, which refers to the direct costs attributable to the production of the goods sold by a company.

Inventory Turnover Rate

A ratio showing how many times a company's inventory is sold and replaced over a period, indicating the efficiency of inventory management.