A Radiologist Is Using an MRI to Determine Whether a Tumor

question 11

Multiple Choice

A radiologist is using an MRI to determine whether a tumor detected in a patient is malignant, but the results are ambiguous. Deciding that the danger of missing a true malignancy is greater than the upset caused by what might be a false positive diagnosis, the radiologist reports that the tumor is probably malignant and refers the patient to a specialist for further evaluation and treatment. In this example,

• A) the radiologist has adopted a neutral decision criterion.
• B) the radiologist has adopted a conservative decision criterion.
• C) the radiologist has adopted a liberal decision criterion.
• D) the radiologist's decision criterion will depend on whether the tumor is later found to be malignant.

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Definitions:

Inferior Good

A type of good whose demand decreases as the income of consumers increases, contrasting with normal goods.

Supply

The total amount of a good or service that is available for purchase at any given price.

Perfectly Inelastic

Describes a situation where the quantity demanded or supplied does not change in response to a price change.

Recession

A period of declining real GDP, accompanied by lower real income and higher unemployment.