Suppose 5% of the Population Have a Certain Disease

question 15

Multiple Choice

Suppose 5% of the population have a certain disease.A laboratory blood test gives a positive reading for 95% of people who have the disease.What is the probability of testing positive and having the disease?

• A)0.0475
• B)0.95
• C)0.05
• D)0.9
• E)0.02

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Definitions:

Deductible Contribution

A contribution or payment that can be subtracted from gross income to reduce taxable income, often related to charity or retirement savings.

Non-working Spouse

A spouse who does not engage in regular paid employment outside the home.

Previously-taxed Dollars

Funds that have already been subject to taxation, not requiring further tax upon withdrawal or transfer.

Qualified Pension Plan

A retirement plan that meets the requirements of the Internal Revenue Code and ERISA, offering tax advantages to the employer and employee.