Use the following scenario to answer the next 5 questions. Millions of Americans are subjected to drug testing in the workplace. The tests are not always reliable. A false positive rate of 5% is considered to be a conservative estimate. Suppose that there are 20 employees in your company, which tests its workers weekly.
What is the probability of no false-positives for this week's test?
What is the probability of at least 1 false-positive for this week's tests?
What is the likelihood that the test will give 5 to 10 false positives?
What is the chance of at most 3 false positives?
How many false positives should the company expect?