Suppose that a randomly chosen person does test positive


Suppose that a medical test has a 92% chance of detecting a disease if the person has it (i.e., 92% sensi- tivity) and a 94% chance of correctly indicating that the disease is absent if the person really does not have the disease (i.e., 94% specificity). Suppose 10% of the popu- lation has the disease.

(a) What is the probability that a randomly chosen person will test positive?

(b) Suppose that a randomly chosen person does test positive. What is the probability that this person really has the disease?

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Econometrics: Suppose that a randomly chosen person does test positive
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