A Pharmaceutical Company Manufacturing Pregnancy Test Kits Wants to Determine

question 31

Essay

A pharmaceutical company manufacturing pregnancy test kits wants to determine the probability of a woman actually being pregnant when the test results indicate that she is not pregnant.It is estimated that the probability of pregnancy among potential users of the kit is 10%.According to the company laboratory test results,1 out of 100 non-pregnant women tested pregnant (false positive).On the other hand,1 out of 200 pregnant women tested non-pregnant (false negative).A woman has just used the pregnancy test kit manufactured by the company and the results showed that she is not pregnant.What is the probability that she is pregnant?

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Definitions:

Variable Overhead

Costs that change with production volume but are not directly tied to specific units, such as utilities for the manufacturing plant.

Direct Materials

Raw materials that are directly traceable and allocable to a finished product in the manufacturing process.

Direct Labor-Hours

A unit of measure for the time workers spend producing goods or services, indicative of the labor cost attributed per hour.

Variable Overhead

Costs that vary with production volume, such as utilities or materials, as opposed to fixed overhead costs.