A company requires all job applicants to undergo drug testing for employment. If the applicant has used drugs the test has a 90% chance of a positive result. If the applicant has not used drugs the test has an 85% chance of a negative result. 4% of all applicants have used drugs. If an applicant has a positive test, what is the probability he or she has actually used drugs?
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
A company requires all job applicants to undergo drug testing for employment. If the applicant has used drugs the test has a 90% chance of a positive result. If the applicant has not used drugs the test has an 85% chance of a negative result. 4% of all applicants have used drugs. If an applicant has a positive test, what is the probability he or she has actually used drugs?
The given probabilities are
(as the sum of the probabilities are one)
The Bays' theorem is
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