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Disease test posterior plus a binomial drug trial

Question

(a) A disease affects 2%2\% of people. A test misses 10%10\% of true cases (false negatives) and flags 1%1\% of healthy people (false positives). Given a positive result, what is the chance the person has the disease?

(b) A lab claims a new drug cures 80%80\% of patients. A regulator treats 2020 patients and counts cures XX, testing H0:p=0.8H_0:p=0.8 against Ha:p<0.8H_a:p<0.8 and rejecting when X≤12X\le12. What is the significance level?

(c) For the same test, what is the power if the true cure rate is 0.60.6?

Short answer

(a) About 0.6480.648. (b) About 0.0320.032. (c) About 0.5840.584. (a) By Bayes, 0.02⋅0.90.02⋅0.9+0.98⋅0.01=0.0180.0278\tfrac{0.02\cdot0.9}{0.02\cdot0.9+0.98\cdot0.01}=\tfrac{0.018}{0.0278}. (b) P(X≤12)\mathbb{P}(X\le12) under Bin(20,0.8)\text{Bin}(20,0.8). (c) P(X≤12)\mathbb{P}(X\le12) under Bin(20,0.6)\text{Bin}(20,0.6).

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