Suppose there a medical test is administered to test if a person has a particular disease:
- If they have the disease, there is 10% probability that the test says they don't have the disease. This is called false negatives.
- If they don't have the disease, there is 30% probability that the test says they have the disease. This is called false positives.
Suppose that a random patient is given this test. If the test result is positive, what is the probability they have the disease?
Logically, it goes like this Pr(Positive,Positive) = 100% - False Positive = 100% - 30% = 70%.
Suppose that now it is known that the disease only occurs in 10% of the population. Using posterior probability, the probability is Pr(Positive,Positive) = 25%
Why does knowing that the disease only occurs in 10% of population change the probability that the patient has the disease? I'm confused; can someone please help me clear my confusion?
