Sensitivity of a Diagnostic Test Is One Method of Determining

question 29

Multiple Choice

Sensitivity of a diagnostic test is one method of determining the accuracy of a test.Which of the following statements BEST defines sensitivity?

• A)The proportion of those individuals without the disease with a true negative test
• B)The proportion of those individuals with the disease who have a true positive test
• C)The proportion of individuals who had a positive test and actually have the disease
• D)The proportion of individuals who had a negative test and truly do not have the disease

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Definitions:

Modified Duration

A measure of the sensitivity of a bond's or bond portfolio's price to changes in interest rates, adjusting for the changing yield to maturity.

Market Yield

The current yield of a bond or other fixed-income security, calculated by dividing the annual interest income by the current market price.

Par-Value

The face value of a bond or stock as stated by the issuer, which is typically the amount repaid at maturity for bonds.

Modified Duration

A formula used to determine the sensitivity of a bond's price to a 1% change in interest rates, indicating the percentage change in price for each percentage point change in yields.