Suppose the cost of a false negative (2c) is twice that of a false positive (c) (because

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Suppose the “cost” of a false negative (2c) is twice that of a false positive (c) (because for a false negative prenatal care would be delayed during the first trimester of pregnancy). If the standard home pregnancy-test kit (made by another drug company) has a sensitivity of .98 and a specificity of .98, then which test (the new or standard) will cost the least per woman using it in the general population and by how much? 


The company anticipates that of the women who will use the pregnancy-test kit, 10% will actually be pregnant.

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