Refer to the Table Which Summarizes the Results of Testing

question 63

Multiple Choice

Refer to the table which summarizes the results of testing for a certain disease. $$\begin{array} { l c c } & \begin{array} { c } \text { Positive Test } \\\text { Result }\end{array} & \begin{array} { c } \text { Negative Test } \\\text { Result }\end{array} \\\text { Subject has the disease } & 111 & 4 \\\text { Subject does not have the disease } & 11 & 172\end{array}$$ 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) 0.0369; The probability of this error is low so the test is fairly accurate.
• B) 0.0348; The probability of this error is low so the test is fairly accurate.
• C) 0.0134; The probability of this error is low so the test is fairly accurate.
• D) 0.591; The probability of this error is high so the test is not very accurate.

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Definitions:

Straight Piecework Plan

A pay system where employees are compensated based on the number of units they produce or tasks they complete, directly linking pay to output.

Performance-Vested

Incentive plans where rewards, often in the form of stock options or bonuses, are given to employees based on achieving predefined performance targets.

Time-Based Restricted Stock

A type of stock option granted to employees as part of their compensation, with restrictions that lapse over a certain period of employment.

Vesting Occurs

The process by which an employee gains nonforfeitable rights over employer-provided assets or benefits, such as retirement funds, over time.