Refer to the Table Which Summarizes the Results of Testing

question 25

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

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Definitions:

Purchasing Power

The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.

Real Rate of Return

The annual percentage return realized on an investment, adjusted for changes in the price level due to inflation or other external effects.

Investment Income

Income generated from financial assets or investments, such as dividends, interest, or rental income.

Involuntary Intergenerational Transfer

The unintended redistribution of wealth across generations, often due to policies or economic conditions, without the explicit consent of those affected.