Business Statistics

Question

A certain disease has an incidence rate of 0.4%. If the false negative rate is 5% and the false positive rate is 2%, compute the probability that a person who tests positive actually has the disease.

   

Give your answer accurate to at least 3 decimal places _______

Answer 1

P(D)=.004

false neg = 5%

false pos = 2%

+ - total

D .38 .02 .4

~D 1.992 97.608 99.6

2.372 97.628 100

P(+)= 2.372%

P(D/=)=.38/2.372 = .1602 = 16.020%

if you really meant 0.4% and not 4%