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Easy · Probability & Combinatorics · Free response · ~4 min · #109

A Negative Test with No Base Rate

Real interview · D. E. Shaw

A test reports positive for 95% of people with a disease and negative for the other 5%. You test negative. Should you celebrate? Say what you can and cannot conclude from this information.

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Worked solution

Give the problem an honest attempt first, then reveal the full explanation.

Reported in interviews

Candidate-reported and unverified; the firm may phrase it differently or no longer ask it. The wording here is our own paraphrase, and the solution was written and checked independently of any answers posted at the source.

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