Problem:
A home pregnancy test is not always accurate. Suppose the probability that the test indicates that a woman is pregnant when she actually is not is 0.02, and the probability the test indicates that a woman is not pregnant when she really is, is 0.02. Assume that the probability that a woman who takes the test is actually pregnant is 0.75.
Required:
Question 1: What is the probability that the test indicates that a woman is not pregnant?
Question 2: What is the probability that a woman is pregnant if the test yields a not pregnant result?
Note: Please show how you came up with the solution.