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A pharmaceutical company is testing a new test for HIV. The company designed an experiment with a total of 1000 individuals. 500 of them are HIV positive and 500 are not.The test results are given in the table below.
Given that a person tests negative, what is the probability that the person actually is HIV positive?
Test Positive Test Negative Row Sum
HIV positive 380 120 500
HIV negative 50 450 500
Column Sum 430 570 1000
The government agency uses an interest rate of 5% and a horizon of 50 years. Assume that the dam has no salvage value after 50 years.
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