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“mcs” — 2017/3/3 — 11:21 — page 772 — #780<br />

772<br />

Chapter 18<br />

Conditional Probability<br />

given E,<br />

Odds.H j E/ WWD Pr H j E <br />

Pr H ˇˇ E<br />

D Pr E j H PrŒH = PrŒE<br />

Pr E ˇˇ <br />

H PrŒH = PrŒE<br />

D Pr E j H <br />

Pr E ˇˇ PrŒH <br />

H PrŒH <br />

D Bayes-factor.E; H / Odds.H /;<br />

(Bayes Theorem)<br />

where<br />

Bayes-factor.E; H / WWD Pr E j H <br />

Pr E ˇˇ H<br />

:<br />

So to update the odds of H given the evidence E, we just multiply by Bayes Factor:<br />

Lemma 18.9.2.<br />

Odds <strong>for</strong> the TB test<br />

Odds.H j E/ D Bayes-factor.E; H / Odds.H /:<br />

The probabilities of test outcomes given in (18.6) and (18.7) are exactly what we<br />

need to find Bayes factor <strong>for</strong> the TB test:<br />

Bayes-factor.TB; pos/ D Pr pos j TB <br />

Pr pos ˇˇ TB<br />

<br />

D<br />

D<br />

1<br />

1 Pr pos ˇˇ <br />

TB<br />

1<br />

1 0:99 D 100:<br />

So testing positive <strong>for</strong> TB increases the odds you have TB by a factor of 100, which<br />

means a positive test is significant evidence supporting a diagnosis of TB. That<br />

seems good to know. But Lemma 18.9.2 also makes it clear that when a random<br />

person tests positive, we still can’t determine the odds they have TB unless we<br />

know what are the odds of their having TB in the first place, so let’s examine that.<br />

In 2011, the United States Center <strong>for</strong> Disease Control got reports of 11,000 cases<br />

of TB in US. We can estimate that there were actually about 30,000 cases of TB

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