East Bank Regional Hospital is considering the purchase of new diagnostic testing equipment, which has a purchase price of $500,000 and an annual maintenance fee of $15,000. In an attempt to evaluate the performance of the equipment, the CEO of East Bank Regional Hospital asks the hospital epidemiologist to gather information from the manufacturer. In tests conducted by the manufacturer, using 100 individuals known to have the disease for which the testing equipment was designed and 200 individuals known to be free of the disease, 90 of the diseased individuals had a positive test result, and 170 individuals without the disease had a negative test result.
a. Based on these data, determine the sensitivity, specificity, and predictive values of a positive test result.
b. Should the hospital epidemiologist recommend the purchase of this equipment?
