A drug company is developing a new pregnancy-test kit for use on an outpatient basis. The company uses the pregnancy test on 100 women who are known to be pregnant, for whom 93 test results are positive. The company uses the pregnancy test on 100 other women who are known to not be pregnant, of whom 99 test negative. (a) What is the sensitivity of the test? 0.93 (b) What is the specificity of the test? 0.99 ✓ The company anticipates that of the women who will use the pregnancy-test kit, 10% will actually be pregnant. (c) What is the PV+ of the test? (Round your answer to four decimal places.) 0.9118 ✓ (d) Suppose the "cost" of a false negative (2c) is twice that of a false positive (c) (because for a false negative prenatal care would be delayed during the first trimester of pregnancy). If the standard home pregnancy-test kit (made by another drug company) has a sensitivity of 0.95 and a specificity of 0.95, then which test (the new or standard) will cost the least per woman using it in the general population and by how much? ✔ test will cost the least per woman using it in the population. The difference in price (calculated as higher price - lower price) is 0.04c The new x.

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PART D

Gynecology
A drug company is developing a new pregnancy-test kit for use on an outpatient basis. The company uses the pregnancy test on 100 women who are known to be pregnant, for whom 93 test results are positive. The company
uses the pregnancy test on 100 other women who are known to not be pregnant, of whom 99 test negative.
(a) What is the sensitivity of the test?
0.93
(b) What is the specificity of the test?
0.99
✓
The company anticipates that of the women who will use the pregnancy-test kit, 10% will actually be pregnant.
(c) What is the PV+ of the test? (Round your answer to four decimal places.)
0.9118
✓
(d) Suppose the "cost" of a false negative (2c) is twice that of a false positive (c) (because for a false negative prenatal care would be delayed during the first trimester of pregnancy). If the standard home pregnancy-test kit
(made by another drug company) has a sensitivity of 0.95 and a specificity of 0.95, then which test (the new or standard) will cost the least per woman using it in the general population and by how much?
✔ test will cost the least per woman using it in the population. The difference in price (calculated as higher price - lower price) is 0.04c
The new
x.
Transcribed Image Text:Gynecology A drug company is developing a new pregnancy-test kit for use on an outpatient basis. The company uses the pregnancy test on 100 women who are known to be pregnant, for whom 93 test results are positive. The company uses the pregnancy test on 100 other women who are known to not be pregnant, of whom 99 test negative. (a) What is the sensitivity of the test? 0.93 (b) What is the specificity of the test? 0.99 ✓ The company anticipates that of the women who will use the pregnancy-test kit, 10% will actually be pregnant. (c) What is the PV+ of the test? (Round your answer to four decimal places.) 0.9118 ✓ (d) Suppose the "cost" of a false negative (2c) is twice that of a false positive (c) (because for a false negative prenatal care would be delayed during the first trimester of pregnancy). If the standard home pregnancy-test kit (made by another drug company) has a sensitivity of 0.95 and a specificity of 0.95, then which test (the new or standard) will cost the least per woman using it in the general population and by how much? ✔ test will cost the least per woman using it in the population. The difference in price (calculated as higher price - lower price) is 0.04c The new x.
Expert Solution
Step 1

To compare the costs of the new and standard pregnancy tests, we need to consider the cost of each type of error for both tests. Let's denote the cost of a false positive as c, and the cost of a false negative as 2c.

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