Imagine a Base Rate of 2 Percent for a Disease

question 1

Multiple Choice

Imagine a base rate of 2 percent for a disease, a false positive rate of 10 percent, and a sensitivity rate of 90 percent for the screening test for the disease. Which is the BEST estimate of the conditional probability that a person given a positive test result actually has the disease?

• A) 5 percent
• B) 10 percent
• C) 15 percent
• D) 20 percent

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Definitions:

Dictator Game

A behavioral economics experiment that tests how fairly individuals allocate resources when one person (the "dictator") has complete control over the distribution.

Economic Behavior

Involves the choices that individuals, businesses, and governments make to allocate resources and their impacts on the market.

Fairness

Fairness is the impartial and just treatment or behavior without favoritism or discrimination.

Dictator Game Experiments

Behavioral experiments in economics where an individual (the "dictator") is given a sum of money and can choose how to split it between themselves and a second participant who has no influence over the decision.