Bayes Theory The proportion of people in a given community w
Bayes Theory- 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? Show work. Show variable definitions and the tree diagram completely filled in.
Solution
If a person tests positive then the probability that the person actually has the disease is 0.00495.
| Event | Prior Probability | Conditional Probability | Joint Probability | Revised Probability |
| Disease | 0.005 | 0.99 | 0.00495 | 0.3322 |
| Do not have disease | 0.995 | 0.01 | 0.00995 | 0.6678 |
| 0.0149 | 1 |
