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In: Statistics and Probability

A widget company tested 101,000 widgets, of which only 1,000 had defects. The company’s test correctly...

  1. 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.

    1. (a) What percentage of the widgets marked as defects were actually defective?

    2. (b) What percentage of the widgets marked as non-defects were not defective?

    3. (c) The answer to problem a is counter-intuitive. Explain what happened?

    4. (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

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