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 40 employees in your company, which test its workers monthly.
a.) What is the probability of no false-positives for this month's test?
b.) What is the probability of at least one false-positive for this month's test?
c.) What is the likelihood that the test will give 5 to 10 false-positives?
d.) What is the chance of at most 3 false-positive?
e.) How many false-positives should the company expect with what standard deviation?