When Evaluating Results of Laboratory Tests, a Test That Is

question 10

Multiple Choice

When evaluating results of laboratory tests, a test that is highly sensitive implies that the test

• A)suggests that a disease is present when it actually is not.
• B)will not have any false-positive results.
• C)suggests that a disease is absent when it is absent.
• D)is able to correctly identify for the disease being tested.
• E)is able to confirm a diagnosis even when the disease is not present.

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Definitions:

Market Beta

A measure of the volatility of a security or a portfolio in comparison to the market as a whole.

Explanatory Power

The ability of a statistical model to account for the variability of a given data set, explaining how well the model represents the data observed.

Fama and French

Economist researchers known for their development of a three-factor model to explain stock returns based on market risk, size, and book-to-market value factors.

Firm Size

A measure of a company's size, often determined by its market capitalization, number of employees, or total assets.