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:

Equity Method

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and subsequently adjusted to reflect the investor's share of the investee's net assets and income.

Investment Account

An account held at a financial institution, enabling individuals or entities to hold and manage their investment portfolios.

Goodwill

A non-physical asset that is recognized when one business buys another at a cost exceeding the fair market value of its net recognizable assets.