Suppose that the reliability of a test for hepatitis is specified as follows: of people sick with hepatitis, 95% test positive; of people free of hepatitis, 90% test negative. From a large population of which 0.05% of the people have hepatitis, a person is selected at random and given the test. a. Find the probability that the person tests positive. b. if the test is positive, what is the probability that the person actually has hepatitis?

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Estimation

A new framework of data analysis where the new statistical methods are used for interpreting the results and analyzing the data is known as estimation in statistics.