Oliver Undergoes a Standard Medical Test While at His Regular

question 31

Essay

Oliver undergoes a standard medical test while at his regular checkup.The test is 90% reliable in detecting a form of cancer (C)that is found in 2% of the population.In particular,Pr(+|C)= 0.90.The test is also 90% reliable in screening out cancer,that is,Pr(-|H)= 0.90.
(a)If Oliver tests positive,how likely is it that he actually has cancer? If he tests negative,what is his cancer risk?

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Definitions:

Supply

The total amount of a product or service that is available to consumers, often influenced by price, production costs, and external factors.

Labor Union

An organization of workers formed to protect and advance their rights and interests, typically through collective bargaining.

Excess Supply

A situation where the quantity of a product offered by producers exceeds the quantity demanded by consumers, leading to surplus.

Equilibrium Market Wage

Another term for the wage rate at which the quantity of labor demanded equals the quantity supplied, ensuring labor market balance without excess supply or demand.