Answer the Question. -Suppose That a Test for a Disease Correctly Gives Positive

question 18

Multiple Choice

Answer the question.
-Suppose that a test for a disease correctly gives positive results for 95% of those having the disease and correctly gives negative results for 92% of those who don't have the disease. Suppose also that
The incidence of the disease is 1%. If a person tests positive for the disease, what can you say about
Their chance of having the disease?

• A)It is about 50%
• B)It is 95%
• C)It is quite low
• D)It is very high

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Definitions:

Externality

A consequence of an economic activity experienced by unrelated third parties; can be either positive or negative.

Neighbors

Individuals or entities located near one another, often used in the context of residential, geographic, or international proximity.

Market Failure

An instance where the free market's distribution of goods and services is inefficient, usually causing a reduction in net social welfare.

Allocate Resources

The process of distributing available resources, such as time, money, and assets, among various projects or business units to maximize efficiency and achieve strategic goals.