Some Employers Use Lie Detector Tests to Screen Job Applicants

question 35

Multiple Choice

Some employers use lie detector tests to screen job applicants.Lie detector tests are not completely reliable.Suppose that a polygraph can detect 64% of lies,but incorrectly identifies 16% of true statements as lies.A company gives its job applicants a polygraph test,asking "Did you tell the truth on your job application?".All the applicants answer "Yes",but the test identifies some of those answers as lies,thereby causing the person to fail the test.Suppose that 90% 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)0.444
• B)0.308
• C)0.16
• D)0.692
• E)0.9

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Definitions:

Consumer Good

A good used or bought for use primarily for personal, family, or household purposes.

Insolvency

A financial state in which an individual or entity is unable to meet its debt obligations or pay its bills as they come due.

Priority Claims

Debts that are given special status by bankruptcy law, which must be paid before other debts in a bankruptcy proceeding.

Unsecured Creditors

Creditors who have provided loans or credit to a debtor without obtaining specific collateral to secure the debt.