Question

In: Statistics and Probability

Assume there is a medical test to diagnose a disease. If a person has the disease,...

Assume there is a medical test to diagnose a disease. If a person has the disease, the probability of having positive test result is 98 percent. If a person does not have the disease, the probability of having negative test results is 99.6 percent. The probability that a person has a disease is 1 percent in the population.

Answer the following questions:

a) If a person has a positive test result, what is the probability that he/she has the disease?

b) If a person has a positive test result, what is the probability that s/he doesn’t have the disease?

c) If a person has a negative test result, what is the probability that he/she doesn’t have the disease?

d) If a person has a negative test result, what is the probability that s/he has the disease?

Note: Use the following notation in your answer:

D: Person with disease

ND: Person without disease

+T: Positive test result

- T: Negative test result

Write each question in the form of mathematical notation for conditional probability.

Calculate the answer using two methods:

1. Bayes’ rule and conditional probability equations.

2. Draw a table, assume a population (e.g. 1 million) and provide numerical answers

Solutions

Expert Solution

                                  Has the disease               Does not have the disease                  Total

Test positive             9800                                         3960                                       13760

Test negative                 200                                          986040                                    986240

Total                           10000    990000 1000000

a) P(has the disease | Test positive) = P(has the disease and test positive )/P(Test Positive)

= 9800/13760 = 0.7122

b) P(Doesn't have the disease | Test positive) =    P(Doesn't have the disease and test positive)/P(Test positive) = 3960/13760 = 0.2878

c) P(Doesn't have the disease | Test negative) =    P(Doesn't have the disease and test negative)/P(Test negative) = 986040/986240 = 0.9998

d) P(has the disease | Test negative) =    P(has the disease and test negative)/P(Test negative)

= 200/986240 = 0.0002                                                                    


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