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## Two Way Table Data Conditional Probability example problem

When insurance companies establish policies for overing screening tests for diseases, one important factor is the value of the test predicting the disease. For example, for a certain type of disease, insurance companies may only cover the test costs if the test improves the prediction of having the disease by 80%. To help decide coverage policy for a new test, use the following data to help decide whether the test should be covered.

a) Find P(A) = P(Having the disease among everyone)

b) Find P(B) = P(Testing positive for everyone)

c) Find P(A and B) = P(Having the disease and testing positive)

d) Find P(A | B) = P(Having the disease given tested positive)

e) Should the test be covered? What is your conclusion? Justify your answer using the conditional probabilities above.

Solution to this Calculus Two Way Table Data Conditional Probability practice problem is given in the video below!