A Self-Administered Pregnancy Test Detects 80% of Those Who Are

question 79

Multiple Choice

A self-administered pregnancy test detects 80% of those who are pregnant but does not detect pregnancy in 20%. It is 92% accurate in indicating women who are not pregnant but indicates 8% of this group as being pregnant. Suppose it is known that 2% of the women in a neighborhood are pregnant. If a woman is chosen at random from those living in this neighborhood, and if the test indicates she is pregnant, what is the probability, rounded to four decimal places, that she really is? ​

• A)Pr(pregnant | tested pregnant) = 0.1949
• B)Pr(pregnant | tested pregnant) = 0.1695
• C)Pr(pregnant | tested pregnant) = 0.2041
• D)Pr(pregnant | tested pregnant) = 0.2000
• E)Pr(pregnant | tested pregnant) = 0.0063

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Definitions:

Preferred Stock

Preferred stock is a type of stock that provides holders with priority over common stockholders regarding dividends and asset liquidation, typically without voting rights.

Par Value

Par value is the face value of a bond or the stock value stated in the corporate charter, below which shares cannot be issued.

Stock Dividend

A distribution of additional shares of a company's stock to its shareholders instead of paying a cash dividend.

Stockholders' Equity

Stockholders' equity represents the ownership interest of shareholders in the corporation, calculated as total assets minus total liabilities.