Imagine a test for a certain disease. Suppose the probability of a positive test result is 0.95 if someone has the disease, but the probability is only 0.08 that someone has the disease if his or her test result was positive. A patient receives a positive test, and the doctor tells him that he is very likely to have the disease. The doctor's response is
a. an example of Confusion of the inverse.
b. an example of the Law of small numbers.
c. an example of The gambler's fallacy.
d. correct, because the test is 95 accurate when someone has the disease.
Question 2
A 95 confidence interval for p the proportion of supermarket customers who do not buy house-brand products at all is calculated and turns out to be: (0.18, 0.46). For each of the following statements determine whether it is true or false. The point estimate of p equals 0.40.
a. True
b. False
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