This question asks you to extend the medical-test example from class. Suppose there is a medical condition that afflicts 20% of the population. There is a test for this condition, and the reliability of this test can be characterized as follows: false-positive rate = 10% for those who do not have the condition, 10% will test positive. false-negative rate = 5% for those who have the condition, 5% will test neg- ative. (a) If you receive a positive test result, what is the likelihood that you have the condition? If you receive a negative test result, what is the likelihood that you do not have the condition? (b) Repeat part (a), except now assume that the false-positive rate is 5% and the false-negative rate is 10%.

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This question asks you to extend the medical-test example from class. Suppose there is a medical
condition that afflicts 20% of the population. There is a test for this condition, and the reliability
of this test can be characterized as follows:
• false-positive rate = 10%
for those who do not have the condition, 10% will
test positive.
for those who have the condition, 5% will test neg-
• false-negative rate = 5%
ative.
(a) If you receive a positive test result, what is the likelihood that you have the condition?
If you receive a negative test result, what is the likelihood that you do not have the condition?
(b) Repeat part (a), except now assume that the false-positive rate is 5% and the false-negative
rate is 10%.
Transcribed Image Text:This question asks you to extend the medical-test example from class. Suppose there is a medical condition that afflicts 20% of the population. There is a test for this condition, and the reliability of this test can be characterized as follows: • false-positive rate = 10% for those who do not have the condition, 10% will test positive. for those who have the condition, 5% will test neg- • false-negative rate = 5% ative. (a) If you receive a positive test result, what is the likelihood that you have the condition? If you receive a negative test result, what is the likelihood that you do not have the condition? (b) Repeat part (a), except now assume that the false-positive rate is 5% and the false-negative rate is 10%.
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