There has been a great deal of controversy over the last several years regarding what types of surveillance are appropriate to prevent terrorism. Suppose a particular surveillance system has a 99% chance of correctly identifying a future terrorist and a 99.9% chance of correctly identifying someone who is not a future terrorist. If there are 1000 future terrorists in a population of 300 million, and one of these 300 million is randomly selected, scrutinized by the system, and identified as a future terrorist, what is the probability that he/she actually is a future terrorist? Does the value of this probability make you uneasy about using the surveillance system? Explain.

Problem 67E Answer: Step1: We have There has been a great deal of controversy over the last several years regarding what types of surveillance are appropriate to prevent terrorism. Suppose a particular surveillance system has a 99% chance of correctly identifying a future terrorist and a 99.9% chance of correctly identifying someone who is not a future terrorist. If there are 1000 future terrorists in a population of 300 million, and one of these 300 million is randomly selected, scrutinized by the system, and identified as a future terrorist, Our goal is to fond, what is the probability that he/she actually is a future terrorist Does the value of this probability make you uneasy about using the surveillance system Explain. Step2: Let us assume that A = The person is a future...