There are natural frequencies and there are probabilities. A natural frequency is a ratio, say 1 out of 100, where as a probability is a percentage, like a 1% tax. It is relatively difficult to derive understanding of data using probabilities, since we are not wired to think in that way.
For instance, “about 0.01 percent of men with no known risk behavior are infected with HIV. If such a man has the virus, there is a 99.9 percent chance that the test result will be positive. If a man is not infected, there is a 99.99 percent chance that the test result will be negative.” (From my cite above.)
Now, what the hell does this mean? Most believe, given the above, that if you test positive then you have a 99%+ chance of having the disease. This is not the case, but is a very normal, very natural way to think. It is innumeracy, plain and simple.
Maeglin cited Bayes’s rule, which is entirely correct. You take the above and apply his rule, giving you some more easily digestable data. However, you can just as easily use some common sense to derive a natural frequency.
So, try to “mentally transform” the above. Out of 10,000 people, then, 9,999 will not have HIV. One will.
Out of 10,000 people, 2 will test positive. One will test positive with the disease, and one will test positive without it.
Those that test positive but don’t have the disease is 1 out of 10,000. This gives you the false positive rate from above. However, this does not mean you have a one percent chance of recieving a false positive.
The chance of receiving a false positive is a ratio, and accordingly is a part over the total. In this instance, the total is the total number who tested positive. The part is the people who tested positive but who do not have the disease.
From our above example, 2 people have tested positive, and accordingly this is the total. Only 1 person actually has the disease out of these 2 people, so 2 - 1 gives us our part, or 1. So, the chance of recieving a false positive is 1 out of 2, or 50 out of 100 or 5,000 out of 10,000. Any way you cut it, it is still 50%.