Suppose the following facts to be true:
-- The probability of a random kindergartener having chicken pox at any given time is 2%.
-- Among kindergarteners who have chicken pox, 75% have red spots.
-- Among kindergarteners who do not have chicken pox, 1% have red spots.
Given that Sanjay, a kindergartener, has red spots, what is the probability that Sanjay has chicken pox?
This is my reasoning:
We know for sure that Sanjay has red spots. 75% of children who have chicken pox have red spots. That means 25% of children who have chicken pox DO NOT have red spots. The probability of Sanjay having chicken pox is 2%. Would it be 75% of 2%? I'm not very sure. This question is a bit confusing.
This is a standard conditional probability question. By definition:
$$ P(\text{chicken pox} \mid \text{spots}) = \frac{P(\text{chicken pox} \cap \text{spots})}{P(\text{spots})} $$
So we now have to find two probabilities:
The first probability is given in the question, $2\%$ of people have chicken pox and of those, $75\%$ have red spots.
The second probability is marginally more difficult. $2\%$ of people have chicken pox and $75\%$ of those have red spots. We must also consider that $100\% - 2\%=98\%$ of people do not have chicken pox, and $1\%$ of those have red spots. Note that these events $\text{chicken pox} \cap \text{spots}$ and $\text{no chicken pox} \cap \text{spots}$ are disjoint (mutually exclusive) and therefore the probability of either happening is simply the sum of their probabilities.