Screening a rare disease
A disease affects 1 in 1000 people. A test is 99% sensitive (true positive) and has a 5% false-positive rate. Given a positive test, what is the probability the person has the disease? Give a decimal to four places.
Show hints (2)+
- The low base rate dominates.
- Compare true positives to all positives.
Answer
Reveal answer →Final answer
0.0194 (± 0.001)
Create a free account to see the full worked solution and track your progress.
Interview format: Hedge Fund Quant, Systematic & Data-Driven Trading