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In: Statistics and Probability

A Covid-19 diagnostic test made in China is 75% accurate on those persons who are infected...

A Covid-19 diagnostic test made in China is 75% accurate on those persons who are infected and 80% accurate on those who are not. If 15% of the population of a particular city is infected and these tests are administered to almost everybody, compute the probability that a particular individual is infected, given that the test indicates that the individual has Covid-19. If the city has a million people, would you pay $38 million to test the whole population?

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