Posted by Anonymous on Wednesday, February 11, 2009 at 2:47pm.
Excel spreadsheets are very helpful for these kinds of problems.
Start by building a probability tree, calculate all possible values. There are 2 kinds of people (with and without), and each test has two answers (yes, no). So, there should be 8 possible outcomes.
The probability of seeing a person with the disease and both test positive is: .01*.9*.9 = .0081
of seeing a person with the disease and the first test is positive and the second negative = .01*.9*.1 = .0009
Repeat for the other 6 possibilities. If you did the calculations right, the sum of the 8 values should be 1.0.
Then you will have all the information you need.
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