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QUESTION

A pharmaceutical company has developed a screening test for a rare disease that afflicted 2% of the population.

A pharmaceutical company has developed a screening test for a rare disease that afflicted 2% of the population. Unfortunately, the reliability of this test is only 80%, which means that 20% of the tested will get a false positive. If a subject is tested positive based on this test, what is the probability that he has the disease?

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