An Engineering Project Involves Reinforcing a Concrete Beam

question 47

Multiple Choice

An engineering project involves reinforcing a concrete beam. From previous experience it is thought that the probability of corrosion is 1%. A diagnostic test is performed on the reinforced beam. If corrosion is present, then the probability that the test will reveal it is 80% while the probability that the test will miss it is 20%. The diagnostic never yields false positives-that is, it will never indicate corrosion if corrosion is not present. What is the probability of discovering corrosion?

• A)0.001
• B)0.008
• C)0.09
• D)0.8
• E)0.002

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Definitions:

Discounted Note

A promissory note whose proceeds are less than its face value because it was sold or issued at a discount.

Account Balance

The amount of money present in an account at any given time, reflecting all transactions such as deposits, withdrawals, and interest earned.

Financial Statement

A report in written form that provides a quantitative analysis of a corporation's financial status, encompassing the balance sheet, income statement, and cash flow statement.

Temporary/Permanent

In accounting, this distinction refers to how certain accounts (temporary) close at the end of a fiscal period, while others (permanent) carry their balances forward.