A health clinic administers a test to determine if a patient has a certain disease. Assume the following is true: a) 2% of the overall population has the disease. b) If a person does have the disease, then the test has a 95% chance of correctly indicating that the person has it. c) If a person does not have the disease, then the test has a 10% chance of incorrectly indicating that the person has it resulting in a “false positive". If a patient tests positive, what is the probability that they actually have the disease?
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Assume a large portion of the general population is being tested for the disease, say about 1,000. We know that 2% of the population, or 20 people are likely to have the disease while 980 don't. Of the 20, 95% or 19 persons will test positive. We also know that of the 980, 90% or 882 will test negative. The remaining 10% or 98 people test positive when they don't have the disease, "false positive." Therefore, the portion of persons tested that actually have the disease is 1 9 + 9 8 1 9 = 16%.