True or False with Reason:

An administrator tracks absences among the staff working in an office. For each employee,
define the events
A = {employee is absent}
S = {employee is sick}
1. The probability that an employee is sick when it is known that the employee is absent is equal
to the probability that an employee is absent when it is known that the employee is sick.
2. If the chance for an employee to be absent is greater than the chance for an employee to be
sick, then A and S are dependent events.
3. If the chance for an employee to be absent is greater than the chance for an employee to be
sick, then P(AS)> P(SA).
4. If she knows that P(A) = 0.20 and P(S) = 0.15, the administrator can find P(SA).
5. If A1 is independent of A2 , then finding out that Employee 1 is absent increases the chance
that Employee 2 is absent.
6. If A1 is independent of A2 , P( A1A 2 ) P( A 2 ).
The Human Resources division classifies employees of the firm into one of three categories:
administrative, clerical, or management. Suppose we choose an employee at random. Define the
events
A = {administrative},
C = {clerical},
M = {management}
Event A occurs, for example, if the randomly chosen employee is an administrator. Event S
occurs if the randomly chosen employee (from any category) makes more than $ 120,000
annually.
7. P(A and C) = P(A) x P(C).
8. If event A is independent of event S, then P(AS) P(SA).
9. Independence of S with each of A, C, and M implies that an equal proportion of employees
within these categories makes above $ 120,000 annually.

10. If 20% of the employees who make more than $ 120,000 annually are in management and
40% of the employees who make more than $ 120,000 annually are administrative, then
P(M)< P(A).
11. If we pick an employee at random from the clerical employees, then P(SC) is the
probability that this employee makes more than $ 120,000 annually.
12. If 75% of employees who work in management make more than $ 120,000 annually but only
30% of employees in the firm as a whole make more than $ 120,000 annually, then the events S
and M are dependent.
13. A pharmaceutical company has developed a diagnostic test for a rare disease. The test has
sensitivity 0.99 (the probability of testing positive among people with the disease) and specificity
0.995 (the probability of testing negative among people who do not have the disease). What
other probability must the company determine in order to find the probability that a person who
tests positive is in fact healthy?
14. An auto manufacturer has studied the choice of options available to customers when ordering
a new vehicle. Of the customers who order a car, 25% choose a sunroof, 35% choose a leather
interior, and 10% choose both. (The rest opt for neither.) Of the customers who order a truck,
20% choose an extended cab, 40% choose all-wheel drive, and 15% choose both. You cannot
get a sunroof on a truck or an extended cab on a car. For this brand, half of the customers who
order a vehicle choose a truck.
(a) Organize these probabilities as a probability tree or probability table. Explain why you
picked a tree or a table.
(b) Whats the probability that the customer orders a vehicle with a sunroof?
15. A vendor specializing in outdoor gear offers customers three ways to place orders for home
deliver. Customers can place orders either in the store, online, or via telephone using a catalog.
Of the orders, one-half are made online with one-quarter each made in stores or via telephone.
Of the online orders, 40% are only for clothing, 30% are only for camping supplies, and 30% are
for both. For orders placed in the store, all are for clothing (to order a size that is not in stock).
Among orders placed via telephone, 60% are for clothing alone, 20% are for both clothing and
camping supplies.
(a) Whats the probability that the customer orders clothing, either by itself or in combination
with camping supplies?