A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
10th Edition
ISBN: 9780134753119
Author: Sheldon Ross
Publisher: PEARSON
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A company audit reveals that 3% of the department budgets contain errors. A program
is developed to analyze budgets and, in a test, identifies errors in 99% of budgets with
errors and 2% of those without. If a budget is identified by the program as possibly
having an error, what is the probability that the budget does have an error? (Hint: Use
the tree diagram, check out the examples in the Bayes' theorem notes)
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Transcribed Image Text:A company audit reveals that 3% of the department budgets contain errors. A program is developed to analyze budgets and, in a test, identifies errors in 99% of budgets with errors and 2% of those without. If a budget is identified by the program as possibly having an error, what is the probability that the budget does have an error? (Hint: Use the tree diagram, check out the examples in the Bayes' theorem notes)
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