Exercises: Analyze Decisions and Strategies Using Probability
Work through each section in order. For testing problems, build the two-way table over the stated population and compute the decision-relevant quantity by counting. Remember the difference between a test's accuracy P(positive | disease) and the decision-relevant P(disease | positive). For strategy problems, account for how a choice changes ALL of the probabilities, not just the one you want. Write explanation answers in complete sentences and name your assumptions.
Fluency Practice
Compute the decision-relevant quantity in each problem.
A disease has prevalence in a population of people, so have it and do not. A test is sensitive (catches of the sick) and specific (correctly clears of the healthy). How many of the healthy people test positive (false positives)?