Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

There is a rare disease, probability of someone getting the disease is P(D) = 0.0001. If you have the disease, it will kill you (

There is a rare disease, probability of someone getting the disease is P(D) = 0.0001. If you have the disease, it will kill you ( P(K|D) = 1 ).

a. There is a test for that disease but it is not always correct means if you have the disease, the test will be positive in 95% of the times ( P(T|D) = 0.95)) and negative in 5% of the times ( P(~T|D) = 0.05).

Also if you do not have the disease, the test might comes positive : P(T|~D) = 0.01 so we can say P(~T|~D) = 0.99

Now you took the test and it came back positive, what is the probability that you actually have the disease? (P(D|T) = ?)

what this value says about the reliability of the test? (

b. There is a cure for this disease (we show it by c) but the cure itself might kill you means if you have the disease or not, if you use the cure, it will kill you with the probability of 5% ( means P(K|C,D) = P(K|C,~D) = 0.05) so P(~K|C,D) = 0.95).

so if the test came back positive, should you get the cure? hint : you need to compare these two values P(K|T,~C) vs P(K|T,C) then explain your decision)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Foundations of Financial Management

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta

10th Canadian edition

1259261018, 1259261015, 978-1259024979

Students also viewed these Mathematics questions