ABC College Is Using a New Screening Test to Test

question 65

Multiple Choice

ABC College is using a new screening test to test its employees for TB. The following table shows the results of a pilot study: Assuming that this result is representative of the college, estimate the probability that a randomly chosen employee who tested positive has TB.

• A)89.1%
• B)84.0%
• C)13.3%
• D)61.8%

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Definitions:

Money Supply

The total amount of monetary assets available in an economy at any given time, including cash, bank deposits, and other liquid assets.

Time Deposits

Banking or financial products that require the depositor to leave funds untouched for a pre-specified period of time in exchange for a higher interest rate.

Money Multiplier

The ratio of the change in the total money supply to the change in the monetary base, indicating how an initial deposit can lead to a greater final increase in the total money supply.

Reserve Banking

A banking system in which banks hold a fraction of their deposits as reserves, enabling them to meet withdrawal demands and extend credits.