Beyond annoyance, spam costs businesses billions of dollars in lost productivity.

Studies showthat 40%

Q2 other reports claim that nearly 95% of all email is spam.To hold back the flood, companies buy softwar
reaches inboxes.Is the software worthwhile? An office currently uses free software that reduces the am
incoming messages. To remove more, the office manager is evaluating a commercial product. The vend
free software and will not lose anyvalid messages. To demonstrate its software, the vendor has offered
email arriving at the office.The office manager plans to use this trial to judge whether the commercial
vendor licenses this software for $15,000 a year. At this price, the accounting department says the soft
improving productivity as it reduces the level of spam to less than 20%.

1 Given this context,

Currently, formulate
36 employees the office
at the null and
arealternative
affected byhypothesis such
spam. These that purchasing
employees earn $40theper
spam filterin
hour on a
2 dealing with 24% spam wastes an estimated 15 minutes per employee per day, then do you think t
3 Talk about Type 1 and Type II errors in this context. Discuss the confusion matrix so created.

Given
s businesses billions of dollars in lost productivity. Studies showthat 40% or more of email is spam, and
95% of all email is spam.To hold back the flood, companies buy software that filters out junk before it
e worthwhile? An office currently uses free software that reduces the amount ofspam to 24% of the
e more, the office manager is evaluating a commercial product. The vendor claims it works better than
anyvalid messages. To demonstrate its software, the vendor has offered to apply filtering software to
office manager plans to use this trial to judge whether the commercial software is cost effective. The
or $15,000 a year. At this price, the accounting department says the software will pay for itself by
duces the level of spam to less than 20%.

he office
he null and
arealternative
affected byhypothesis such
spam. These that purchasing
employees earn $40theper
spam filtering
hour system
on average in will
wagesbe and
profitable.
benefits. If
tes an estimated 15 minutes per employee per day, then do you think that this purchase breaks even?
rrors in this context. Discuss the confusion matrix so created.