Q. One half percent of the population has a particular disease. A test is developed for the disease. The test gives a false positive of the time and a false negative of the time. What is the probability that Amit (a random person) tests positive?

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Solution:

Let be the event that Amit has the disease. Let be the event that Amit's test comes back positive. We are told that , since of the population has the disease. We also have , since of the time a person having the disease is missed ("false negative"). We are told that , since there are false positive.
Required probability :