Disco Fever Is Randomly Found in One Half of One

question 58

Multiple Choice

Disco Fever is randomly found in one half of one percent of the general population.Testing a swatch of clothing for the presence of polyester is 99% effective in detecting the presence of this disease.The test also yields a false-positive in 4% of the cases where the disease is not present.What is the probability that the test result is negative if the disease is absent?

• A)0.95
• B)0.96
• C)0.99
• D)0.995

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Definitions:

Equilibrium Quantity

The amount of goods or services supplied in a market that is exactly equal to the quantity demanded at the equilibrium price.

Rationing Device

A method used to distribute scarce resources, goods, or services among people.

Supply Shifts

Movements of the supply curve to the right or left, indicating a change in the quantity supplied at each price point, due to factors other than the price of the good itself.

Equilibrium Quantity

The quantity of goods or services supplied that is exactly equal to the quantity demanded at the market equilibrium price.