A certain disease has an incidence rate of 0.8%. If the false negative rate is 7% and the false positive rate is 3%, compute the probability that a person who tests positive actually has the disease. Show all work.

Answer 1

look at 100,000 people

800 have it
... 56 will show negative
... 744 will show positive

99200 don't have it
... 2976 will show positive

probability of accurate positive
... 744 / (744 + 2976)