Business Statistics Assessment 1 : Statistics Questions

Question3: (10 marks)

After researching cysts of a particular type, a doctor learns that out of 10,000 such cysts examined, 1,500 are malignant and 8,500 are benign. A diagnostic test is available which is accurate 80% of the time (whether the cyst is malignant or not). The doctor has discovered the same type of cyst in a patient.

1. In the absence of any test, what is the probability that the cyst is malignant? What is the probability that the cyst is benign?
2. What is the probability that the patient will test positive?
3. What is the probability that the patient will test negative?
4. What is the probability that the patient has a benign tumor if he or she tests positive?
5. What is the probability that the patient has a malignant cyst if he or she tests negative?