Determining the conservative estimate


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 likelihood that the test will give 5 to 10 false positives? Or the chance of at most 3 false positives?

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Basic Statistics: Determining the conservative estimate
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