1. Suppose an airport scanning device has 98% accuracy in detecting certain kinds of metal objects (98% of people carrying these objects are correctly identified as carriers and 98% of people not carrying them are correctly identified as non-carriers). Suppose that 1% of all travelers actually carry such metal objects. For the 100,000 people who pass through the scanning device each week, do the following:

a. Find the number of people not carrying metal objects who are identified as carriers (false positives).
b. Find the number of non-carriers who are identified as non-carriers (true negatives).
c. Find the number of carriers who are identified as non- carriers (false negatives).
d. Find the number of carriers who are identified as carriers (true positives).
e. What percentage of the people identified as carriers are falsely identified?

Solution Preview

We have two events:

A: The scanning device detects a certain kind of metal object.
B: A person carries this kind of metal object.

From the condition, we have ...

Solution Summary

The solution uses Bayesian probability to determine the probabilities of travelers carrying metal objects based on the accuracy of a security scanner.

The manufacturer of an airport baggage scanning machine claims it can handle an average of 580 bags per hour. At alpha (?) = .01, would a sample of 18 randomly chosen hours with a mean of 525 and a standard deviation of 45 support the manufacturer's claim? Do both by hand and with Excel.
Note- Use a 0.05 level of significance

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B) P(A or B) = P(A) * P(B)
C) P(A or B) = P(A) + P(B)
D) P(A or B) = P(A|B) * P(B)
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Payoff Matrix
Airport is Built at Location
Land Purchased at Location(s) A B
A $75.0 $15.0
B ($25.0) $125.0
A&B

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2. What are the states of nature?
3. What is a variable?
4. What is a z score?
5. How does a z score differs from a t score?
6. What does the symbol sX represent?
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Problem 3 Show work in Excel
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Month Airport costs Flights originating at the airport
January $22,000 1,200
February 19,00