We have studied a new test for Hepatitis C in laboratory situations. We know that if a person really has Hep-C the test will be positive with probability 95%. If a person really does not have Hep-C the test will be positive with probability 0.5%. We believe that 0.2% of the population has Hep-C.
A) What is the probability the test will be positive if administered randomly from the population.
B) Suppose the test is used to screen applicants for insurance. The test is positive. What is the probability the applicant has Hep-C