Some Employers Use Lie Detector Tests to Screen Job Applicants

question 196

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) 0.259
• C) 0.349
• D) 0.14

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Definitions:

Moving Company

A business that provides services to transport furniture, equipment, and other belongings from one location to another.

FOB

An international commercial term indicating that the seller delivers the goods on board a vessel designated by the buyer.

Abbreviation

A shortened form of a word or phrase used primarily in writing to represent the complete form.

Credit Terms

The agreements between sellers and buyers that stipulate the payment amount and due dates of payments to be made for goods and services.