Find the probability that somebody is healthy given that they have positive test result?

Problem
A disease is known to affect 1 in 10,000 people. A screening test for the disease shows a positive result for 99% of the people with the disease. The test also shows positive for 2% of people who do not have the disease. Find the probability that somebody is healthy given that they have positive test result?

A.   99.51% C.   46.32%
B.   12.32% D.   78.36%

 

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Solution