Some employers use lie detector tests to screen job applicants. Lie detector tests are not completely reliable. Suppose that in a lie detector test, 65% of lies are identified as lies and that 14% of true statements are also identified as lies. A company gives its job applicants a polygraph test, asking "Did you tell the truth on your job application?" Suppose that 93% of the job applicants tell the truth during the polygraph test. What is the probability that a person who fails the test was actually telling the truth?

How should the environmental effects be dealt with when evaluating this project? the environmental effects should be ignored since the plant is legal without mitigation. the environmental effects should be treated as a sunk cost and therefore ignored. if the utility mitigates for the environmental effects, the project is not acceptable. however, before the company chooses to do the project without mitigation, it needs to make sure that any costs of "ill will" for not mitigating for the environmental effects have been considered in the original analysis. the environmental effects should be treated as a remote possibility and should only be considered at the time in which they actually occur. the environmental effects if not mitigated would result in additional cash flows. therefore, since the plant is legal without mitigation, there are no benefits to performing a "no mitigation" analysis.