The board of directors of a company knows that the probability that the carbon emission from the company’s manufacturing unit is exceeding the permissible level is 35%. A consultant is hired to use a carbon footprint calculator to test for the emission level. The accuracy of this test is said to be 85%.

Question

anonymous · Answer

You have this additional information: the test reported that the carbon emission from the manufacturing unit is well within the permissible level. What is the probability that the emission is within the permissible level, given the outcome of the test?

anonymous · Answer

I believe I need to use Bayes's Theorem but I'm not sure how to apply it.