In: Statistics and Probability
A widget company tested 101,000 widgets, of which only 1,000 had defects. The company’s test correctly identified defects 99% of the time and correctly identified non-defects 95% of the time.
(a) What percentage of the widgets marked as defects were actually defective?
(b) What percentage of the widgets marked as non-defects were not defective?
(c) The answer to problem a is counter-intuitive. Explain what happened?
(d) What would be your suggestion for improving the accuracy of the defect/non- defect identification. Improving the accuracy of the tests is not a valid answer. R-Studio