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"Gigerenzer and his colleagues asked doctors in Germany and the United States to estimate the probability that a woman with a positive mammogram actually has breast cancer, even though she's in a low-risk group: 40 to 50 years old, with no symptoms or family history of breast cancer.
"The probability that one of these women has breast cancer is 0.8 percent. If a woman has breast cancer, the probability is 90 percent that she will have a positive mammogram. If a woman does not have breast cancer, the probability is 7 percent that she will still have a positive mammogram. Imagine a woman who has a positive mammogram. What is the probability that she actually has breast cancer?"
We'll use "natural frequencies" to solve this problem.
We can also fill in the rest of our table, and do other probabilities.
"As for the American doctors, ninety-five out of a hundred estimated the woman's probability of having breast cancer to be somewhere around 75 percent."