EP USING+UNDERSTANDING MATH.-18 WK.ACC.
EP USING+UNDERSTANDING MATH.-18 WK.ACC.
7th Edition
ISBN: 9780135961216
Author: Bennett
Publisher: PEARSON CO
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Chapter P, Problem 2DQ

Quantitative Concepts in the News. Identify the major un-resolved issue discussed in today& news. List at three areas in which quantitative concepts play a role in the policy considerations of this issue.

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3. Bayesian Inference – Updating Beliefs A medical test for a rare disease has the following characteristics: Sensitivity (true positive rate): 99% Specificity (true negative rate): 98% The disease occurs in 0.5% of the population. A patient receives a positive test result. Questions: a) Define the relevant events and use Bayes’ Theorem to compute the probability that the patient actually has the disease.b) Explain why the result might seem counterintuitive, despite the high sensitivity and specificity.c) Discuss how prior probabilities influence posterior beliefs in Bayesian inference.d) Suppose a second, independent test with the same accuracy is conducted and is also positive. Update the probability that the patient has the disease.
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