(Answered) Suppose that 1 of the employees of a certain company use

Economics

Suppose that 1% of the employees of a certain company use illegal drugs. This company performs random drug tests that return positive results 99% of the time if the person is a drug use. However, it also has a 2% false positive rate. The results of the drug test are known to be independent from test to test for a given person.

(a) Steve, an employee of the company, has a positive test. What is the probability that he is a drug user?

(b) Knowing he failed his first test, what is the probability that Steve will fail his next drug test?

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Business Economics, Economics

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