3. On July 17, 2011, in an article in The Boston Globe headlined "Caught in a dragnet" you could read that in 2010 the Massachusetts Registry of Motor Vehicles used software that cost $1.5 million to send 1,500 suspension letters a day, leading to 100 arrests for fraudulent identity and 1,860 revoked licenses. (R318]. On July 24, Jane Allen wrote a letter to the editor in response, to say that the time and money hardly seemed worth it since only "about 390,000 people were questioned for the sake of finding fewer than 2.000 transgressors." (R319] (a) Check Allen's arithmetic in the second paragraph. (b) Identify the false positives and calculate the false positive rate. Explain the costs and benefits.

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3. On July 17, 2011, in an article in The Boston Globe headlined "Caught in a dragnet" you could read that in 2010 the Massachusetts Registry of Motor Vehicles used software that cost $1.5 million to send 1,500 suspension letters a day, leading to 100 arrests for fraudulent identity and 1,860 revoked licenses. (R318]. On July 24, Jane Allen wrote a letter to the editor in response, to say that the time and money hardly seemed worth it since only "about 390,000 people were questioned for the sake of finding fewer than 2.000 transgressors." (R319] (a) Check Allen's arithmetic in the second paragraph. (b) Identify the false positives and calculate the false positive rate. Explain the costs and benefits.
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