What is the percentage of projects not passing the test

Assignment Help Finance Basics

Reference no: EM133264745

Case: Bob would like to develop a system to evaluate a corporate project good or bad. The analyst gathered the following information when validating the system. Assume there are two types of projects, good vs poor.
15% of projects are bad: P (bad project)=0.15.
78% of projects pass the test of the system, i.e. P(pass test) = 0.78.
The project passes the test with 86% of probability given a good project, i.e. P(pass test | good project)=0.86 .

Question 1.) What is the percentage of projects not passing the test?

Question 2.) Calculate the probability of passing the test given that it is a bad project, i.e. P(pass test | bad project)=?

Reference no: EM133264745

Questions Cloud

Demonstrate oral communication skills : Demonstrate oral communication skills. Can you please record yourself responding to Jamie's inquiry by asking for more information about his personal

Explain how the present value of money and future value : BU 4762 The College at Old Westbury explain how the present value of money and future value of money can be fungible

Cooperative education and allied health programs : The Department of Social Work at Mount Sinai Hospital offers internships to first and second year Master of Social Work (MSW) students.

Motivational interviewing within the icebreaker : Explain how you would use motivational interviewing within the icebreaker to build cohesion and engagement, particularly with sexual assault victims asking them

What is the percentage of projects not passing the test : FINA 4334 University of Houston What is the percentage of projects not passing the test and Calculate the probability of passing the test given that it is a bad

How internet terms of use agreements work : You are employed at a social network start-up company. Your boss, Felix Unger, wants to know more about how internet Terms of Use Agreements work.

What time frame is needed for this project : What time frame is needed for this project? How might the existing Citibank credit card system be modified to incorporate the UCS features

Explain the personal jurisdiction and in rem jurisdiction : Explain the meaning of subject matter jurisdiction, personal jurisdiction and in rem jurisdiction. You may research in the textbook or find a reliable source.

What is the firm''s after-tax component cost of debt : FIN 515 Jacksonville State University What is the firm's after-tax component cost of debt for purposes of calculating the WACC? (Hint: Base your answer on the

User Account

All Pages