The proportion of people in a given community who have a certain disease is 0.005. A test
is available to diagnose the disease. If a person has the disease, the probability that the test
will produce a positive signal is 0.99. If a person does not have the disease, the probability
that the test will produce a positive signal is 0.01. If a person tests positive, what is the
probability that the person actually has the disease?
Consider N be the persons which have true diseases and + sign indicates the positive sign of the test. And consider "N^{\\prime}" be the persons which have not true diseases and + sign indicates the positive sign of the test. So, the conditional probability that if a person tests positive (X) given actually disease is calculated as:
"\\begin{gathered}\n\nP(X \\mid+)=\\frac{P(X \\cap+)}{P(+)} \\\\\n\n=\\frac{P(+X) P(X)}{P(+X) P(X)+P\\left(+X^{\\prime}\\right) P\\left(X^{\\prime}\\right)} \\\\\n\n=\\frac{0.99 \\times 0.005}{(0.99 \\times 0.005)+(0.01 \\times(1-0.005))} \\\\\n\n=0.3322\n\n\\end{gathered}"
The required conditional probability that if a person test positive given actual disease is approximately 0.3322 .
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