The question says that in a test a positive result is the one in which it correctly indicates the result as positive when the chemical is present and also correctly indicates the result as negative if the chemical is not present.
st 1: This states that 1 out of every 10 positive results are not true. (i.e the test indicated them to be +ve even though they were actually not positive)
From this we cant derive anything since we dont know the number of positive results.
st 2: This states that 90% of the results were negative.
Thus, out of 1000 houses ---> 900 -->negative results & 100 ---> positve results
Now, from st 1 we know that 1 out of every 10 positive results were not true. Hence, out of 100 positive results 10 are not true.
But, we dont know the number of "not true" results from the tests that indicated negative (i.e 900 houses)
Thus, E is the answer.
Hope that helps!!
Can u post the actual answer...