In: Statistics and Probability
A blood test indicates the presence of a particular disease 96% of the time when the disease is actually present. The same test indicates the presence of the disease 0.8% of the time when the disease is not present. Two percent of the population actually has the disease. Calculate the probability that a person has the disease, given that the test indicates the presence of the disease.
P(actually has the disease) = 0.02
P(test indicates the presence of the disease | actually has the disease) = 0.96
P(test indicates the presence of the disease | the disease is not present) = 0.008
P(test indicates the presence of the disease) = P(test indicates the presence of the disease | actually has the disease) * P(actually has the disease) + P(test indicates the presence of the disease | the disease is not present) * P(the disease is not present)
= 0.96 * 0.02 + 0.008 * (1 - 0.02)
= 0.02704
P(person has the disease | the test indicates the presence of the disease) = P(test indicates the presence of the disease | actually has the disease) * P(actually has the disease) / P(test indicates the presence of the disease)
= 0.96 * 0.02 / 0.02704
= 0.71