News Focus
News Focus
Post# of 257553
Next 10
Followers 843
Posts 122973
Boards Moderated 9
Alias Born 09/05/2002

Re: DewDiligence post# 231268

Thursday, 04/23/2020 10:25:09 PM

Thursday, April 23, 2020 10:25:09 PM

Post# of 257553
Re: Sensitivity/specificity/NPV*/PPV† (corrected)

This chart, from Evaluate Vantage, shows the difficulty of obtaining a high PPV† when the tested population has a low true-positive rate—arbitrarily set to 5% in this chart. Under such circumstances, a test with 95% specificity may have little or no practical utility insofar as it produces as many false-positive results as true-positive results—and even a test with 99% specificity produces a 16% false-positive rate.



*Negative Predictive Value: Probability that a negative test result is truly a negative subject.

Positive Predictive Value: Probability that a positive test result is truly a positive subject.

(Note: The previous version of this post had incorrect definitions of NPV and PPV. h/t ‘valencay’ for noticing the error.)

“The efficient-market hypothesis may be
the foremost piece of B.S. ever promulgated
in any area of human knowledge!”

Discover What Traders Are Watching

Explore small cap ideas before they hit the headlines.

Join Today