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Use Bayes' Theorem to Find the Indicated Probability

question 142

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Use Bayes' theorem to find the indicated probability.
-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?


Definitions:

Uncertainties

Situations or conditions where the outcomes are unpredictable or unknown, often requiring risk assessment and management.

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The process of producing media content, from conceptualization through to the final output, covering various formats such as film, television, and digital media.

Acquisition Differential

The excess amount paid over the net asset value in a company takeover, reflecting intangibles such as the target's brand, customer relationships, and synergies expected from the merger.

Comparative Consolidated Financial Statements

Financial statements that present the combined financial position and operations of a parent company and its subsidiaries, along with comparative data for previous periods.

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