Some Employers Use Lie Detector Tests to Screen Job Applicants

question 190

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

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Definitions:

Batch Level

Refers to the classification in cost accounting that associates costs with specific batches of goods or services rather than with individual units or processes.

Unit-level Costs

Costs that are incurred for every unit produced, directly proportional to the production volume.

Product Cost

The total cost incurred to create a product, encompassing raw materials, labor, and overhead expenses.

Direct Labor Costs

Expenses associated with the labor directly involved in the production of goods or services.