Suppose four out of every 10,000 individuals in a country has a rare disease. a test for the disease exist. individuals known to have the disease test positive 96% of the time individuals known to be free of the disease test negative 96% of the time. Suppose an individual from the country is selected at random( with all being equally likely to be selected) and given the test . Given that the individuals test positive what is the probability that he in fact has a disease .Give the probability as a decimal number to six decimal places
Answer)
Lets say we have a sample of 10,000
Now 4 out of these 10,000 has the disease
And it is mentioned that if the individual has a disease then, he will test positive 96% of the time
0.96*4 = 3.72
And it is also mentioned that if the person does not have disease then he will be tested negative 96% of the time that is 4% of the time results will be positive
Persons with no disease = 10000-4 = 9996
Positive results = 0.04*9996 = 399.84
Probability is given by favorable/total
Total = positive tests = 3.72 + 399.84
Favorable = person has the disease = 3.72
Required probability = 3.72/(3.72+399.84) = 0.00921796015 = 0.009218
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