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	<title>base rate fallacy Archives - Creatronix</title>
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		<title>Bayes’ Theorem</title>
		<link>https://creatronix.de/bayes-theorem/</link>
		
		<dc:creator><![CDATA[Jörn]]></dc:creator>
		<pubDate>Sun, 03 Dec 2017 16:26:26 +0000</pubDate>
				<category><![CDATA[Data Science & SQL]]></category>
		<category><![CDATA[base rate fallacy]]></category>
		<category><![CDATA[Bayes theorem]]></category>
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		<guid isPermaLink="false">https://creatronix.de/?p=1171</guid>

					<description><![CDATA[<p>Imagine that you come home from a party and you are stopped by the police. They ask you to take a drug test and you accept. The test result is positive. You are guilty. But wait a minute! Is it really that simple? In Germany about 2.8 million people consume weed on a regular basis,&#8230;</p>
<p>The post <a href="https://creatronix.de/bayes-theorem/">Bayes’ Theorem</a> appeared first on <a href="https://creatronix.de">Creatronix</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p>Imagine that you come home from a party and you are stopped by the police. They ask you to take a drug test and you accept. The test result is positive. You are guilty.</p>
<p>But wait a minute! Is it really that simple?</p>
<p>In Germany about 2.8 million people consume weed on a regular basis, that&#8217;s about 3.5% of the population.</p>
<p>Let&#8217;s say D is drug addict and consumes weed regularly, ¬D consumes no weed. So the chance by randomly picking a person that he or she is a drug addict is P(D) = 0.035</p>
<p>Because You either take drugs or you don&#8217;t the remaining part must be non-drug takers P(¬D) = 1 &#8211; P(D) = 0.965.</p>
<p>The accuracy of a drug test is about 92%. So let&#8217;s assume that there are 8% false positives and 8% false negatives as well.</p>
<p>The chance that if a person actually takes drugs the test result will be positive is P(+|D) = 0.92 but You also get a positive reuslt when a person doesn&#8217;t take drugs in 8% of all cases: P(+|¬D) = 0.08 These are called &#8220;False positives&#8221;.</p>
<p>When a person doesn&#8217;t take drugs the test will be negative in 92% of all cases P(-|¬D) = 0.92.  And of course a test can also be negative even if a person takes drugs P(-|D) = 0.08. these are called &#8220;False negatives&#8221;. Got it?</p>
<p>What comes next?</p>
<p>Combined Probabilities</p>
<p>Knowing the success and error rates of the test and the relative distribution of drug consumers we can calculate the combined probabilities:</p>
<ul>
<li>P(+, D) = 0.035 * 0.92 = 0.0322</li>
<li>
<ul>
<li>Think: The test is <strong>positive AND</strong> the person is a drug user</li>
</ul>
</li>
<li>P(+, ¬D) = 0.965 * 0.08 = 0.0772</li>
<li>
<ul>
<li>Think: The test is <strong>positive AND</strong> the person is <strong>NOT</strong> a drug user</li>
</ul>
</li>
<li>P(-, D) = 0.035 * 0.08 = 0.0028</li>
<li>
<ul>
<li>Think: The test is <strong>negative AND</strong> the person is a drug user</li>
</ul>
</li>
<li>P(-, ¬D) = 0.965 * 0.92 = 0,8878</li>
<li>
<ul>
<li>Think: The test is <strong>negative AND</strong> the person is <strong>NOT</strong> a drug user</li>
</ul>
</li>
</ul>
<h2>Bayes Theorem</h2>
<p>P(A|B) = P(B|A) * P(A) / P(B)</p>
<p>In our case we are interested in the probability of a person being a drug addict given the test is positive. That means:</p>
<p>P(D | +) = P(+ | D) * P(D) / P(+) = P(+ | D) * P(D) / ( P(+, D) + P(+, ¬D) )</p>
<p>= 0.92 * 0.035 / (0.0322 + 0.0772) = <strong>0.294</strong></p>
<p>The outcome is quite interesting and mildly shocking: The probability that a person tested positively is actually a drug addict is only around 29% or less than one third!</p>
<p>Why is this so counter intuitive, when the test states an accuracy of 92%?  That is the so called <strong>base rate fallacy</strong>. We have to take into account that only 3.5% of the population actually take drugs.</p>
<p>More read about drug tests</p>
<p><a href="https://www.webmd.com/drug-medication/news/20100528/drug-tests-often-trigger-false-positives#1">Drug tests generally produce false-positive results in 5% to 10% of cases and false negatives in 10% to 15% of cases, new research shows.</a></p>
<p>The post <a href="https://creatronix.de/bayes-theorem/">Bayes’ Theorem</a> appeared first on <a href="https://creatronix.de">Creatronix</a>.</p>
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