Suppose the Probability That an Individual Has a Particular Medical

question 125

Short Answer

Suppose the probability that an individual has a particular medical condition is .10. Tests of an individual's DNA can determine whether they have this medical condition but with only an 85 percent accuracy rate (that is, if the condition is present, the probability that the DNA test will give a positive finding is .85). If the medical condition is not present, the probability of the DNA test saying the medical condition exists is 0.03. What is the probability that the medical condition is present if the DNA test comes back positive?

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Definitions:

Technological Opportunities

The possibilities for technological innovation and development, often leading to new products, services, or processes.

Industry's Concentration

An indicator of how much a few companies control the overall output, sales, or market share within a sector.

Creative Destruction

The process through which new innovations lead to the demise of older technologies or industries, driving economic growth through continuous evolution.

Dominant Firms

Companies that hold a major portion of market share in their industry, influencing market conditions.