Decision Analysis and Bayes Rule[13 points]

Two trained classifiers A and B are available to classify tissue samples as benign
or malignant. Each classifier is prone to two types of errors. The table below
summarizes the probability of these errors:
Classif
ers
A
B

False Positive Error

Probability
0.06
0.04

False Negative Error

Probability
0.01
0.02

False Positive error probability is defined as the conditional probability of

classifying ahealthy tissue sample as malignant.
False Negative error probability is defined as the conditional probability of
classifying an infected tissue sample as benign.

Historical data suggests that 10 percent of the tissue samples are infected.
a. Based on the information specified above, what is the conditional probability
that:
(i)

A tissue sample classified as benignbyclassifierB is actually infected? (2

Points)

(ii)

A tissue sample classified as malignantbyclassifierA is actually healthy?(2

Points)

b. If the cost of classifying an infected tissue sample as benign is 100 times the
cost of classifying a healthy tissue as malignant, which classifier should a risk
neutral rational decision maker use? Why? (3 Points)

c. We assumed that 10% of the tissue samples are infected. At least how low
should the percentage of infected tissues be for a risk neutral rational decision
maker to prefer classifierB? Assume that all other parameters remain as
specified in (a) and (b). (3 Points)

d. We assumed that the ratio of the cost of classifying an infected tissue sample as
benign to the cost of classifying a healthy tissue as malignant is 100. At least
how low must this ratio be for a risk neutral rational decision maker to prefer
classifierB? Assume that all other parameters remain as specified in (a) and (b).
(3 Points)