Refer to the Table Which Summarizes the Results of Testing

question 20

Multiple Choice

Refer to the table which summarizes the results of testing for a certain disease. $$\begin{array} { l | c c } & \begin{array} { l } \text { Positive } \\\text { Test Result }\end{array} & \begin{array} { l } \text { Negative } \\\text { Test Result }\end{array} \\\hline \text { Subject has the disease } & 87 & 9 \\\text { Subject does not have the disease } & 27 & 312\end{array}$$ A test subject is randomly selected and tested for the disease. What is the probability the subject has the disease given that the test result is negative.

• A) 0.028
• B) 0.094
• C) 0.221
• D) 0.972

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Definitions:

Weighted Average Method

An inventory costing method that assigns an average cost to each item based on the total cost of goods available for sale and the number of items available.

Equivalent Units

A concept used in process costing that converts partially completed units into a number of complete units with regards to work done or costs incurred.

Beginning Inventory

The value of a company's inventory at the start of an accounting period.

Weighted Average Method

An inventory costing method that calculates cost of goods sold and ending inventory based on the weighted average cost of all items available for sale.