In: Economics
A new, simple test has been developed to detect a particular type of cancer. The test must be evaluated before it is put into use. A medical researcher selects a random sample of
1,000
adults and finds (by other means) that
3%
have this type of cancer. Each of the
1,000
adults is given the test, and it is found that the test indicates cancer in
97%
of those who have it and in
2%
of those who do not. Based on these results, what is the probability of a randomly chosen person having cancer given that the test indicates cancer? Of a person having cancer given that the test does not indicate cancer?
Based on these results, what is the probability of a randomly chosen person having cancer given that the test indicates cancer?