18% of a Population Are Infected with a Certain Disease

question 14

Multiple Choice

1.8% of a population are infected with a certain disease.There is a test for the disease,however the test is not completely accurate.94.2% of those who have the disease will test positive.However 4.8% of those who do not have the disease will also test positive (false positives) .What is the probability that a person who tests positive actually has the disease?

• A)0.360
• B)0.265
• C)0.942
• D)0.018
• E)0.735

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Definitions:

Gross Margin Percentage

A profitability metric calculated as gross margin (sales minus cost of goods sold) divided by sales, expressed as a percentage.

Net Profit Margin Percentage

A financial metric that shows what percentage of a company's revenue remains as profit after all expenses are deducted.

Book Value per Share

The equity available to shareholders divided by the number of outstanding shares.

Dividend Yield Ratio

A measure demonstrating the annual dividend payout of a company in relation to its stock price.