An Introduction to Decision Analysis, Robert T. Clemen presents an example in which he discusses the 1982
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a. Approximately 1.5 percent of the people in the United States suffer from schizophrenia. If we consider the prior probability of schizophrenia to be .015, use the information given to find the probability that a person has schizophrenia given that a person’s CAT scan shows brain atrophy.
b. John Hinckley’s CAT scan showed brain atrophy. Discuss whether your answer to part a helps or hurts the case that Hinckley suffered from mental illness.
c. It can be argued that .015 is not a reasonable prior probability of schizophrenia. This is because .015 is the probability that a randomly selected U. S. citizen has schizophrenia. However, John Hinckley was not a randomly selected U. S. citizen. Rather, he was accused of attempting to assassinate the President. Therefore, it might be reasonable to assess a higher prior probability of schizophrenia. Suppose you are a juror who believes there is only a 10 percent chance that Hinckley suffers from schizophrenia. Using .10 as the prior probability of schizophrenia, find the probability that a person has schizophrenia given that a person’s CAT scan shows brain atrophy.
d. If you are a juror with a prior probability of .10 that John Hinckley suffers from schizophrenia and given your answer to part c, does the fact that Hinckley’s CAT scan showed brain atrophy help the case that Hinckley suffered from mental illness?
e. If you are a juror with a prior probability of .25 that Hinckley suffers from schizophrenia, find the probability of schizophrenia given that Hinckley’s CAT scan showed brain atrophy. In this situation, how strong is the case that Hinckley suffered from mental illness?
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Essentials Of Business Statistics
ISBN: 9780078020537
5th Edition
Authors: Bruce Bowerman, Richard Connell, Emily Murphree, Burdeane Or
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