Refer to the Table Which Summarizes the Results of Testing

question 55

Multiple Choice

Refer to the table which summarizes the results of testing for a certain disease. $$\begin{array} { l | c c } & \begin{array} { l } \text { Positive } \\\text { Test Result }\end{array} & \begin{array} { l } \text { Negative } \\\text { Test Result }\end{array} \\\hline \text { Subject has the disease } & 87 & 9 \\\text { Subject does not have the disease } & 27 & 312\end{array}$$ A test subject is randomly selected and tested for the disease. What is the probability the subject has the disease given that the test result is negative.

• A)0.028
• B)0.094
• C)0.221
• D)0.972

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Definitions:

Microeconomics

The branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources.

Margin

The difference between the selling price of a product or service and its production or acquisition costs, often expressed as a percentage of the selling price.

Incentives

Incentives are benefits or rewards provided to encourage specific behaviors or actions, playing a crucial role in economic decision-making.