Chances Are

This succinct piece nicely demonstrates the importance of an understanding of probability and statistics for all of us (and is also why I am glad that AP statistics is being offered at Sageridge school next year).
Uvealblues

In one study, Gigerenzer and his colleagues asked doctors in Germany and the United States to estimate the probability that a woman with a positive mammogram actually has breast cancer, even though she’s in a low-risk group: 40 to 50 years old, with no symptoms or family history of breast cancer.  To make the question specific, the doctors were told to assume the following statistics — couched in terms of percentages and probabilities — about the prevalence of breast cancer among women in this cohort, and also about the mammogram’s sensitivity and rate of false positives:
The probability that one of these women has breast cancer is 0.8 percent.  If a woman has breast cancer, the probability is 90 percent that she will have a positive mammogram.  If a woman does not have breast cancer, the probability is 7 percent that she will still have a positive mammogram.  Imagine a woman who has a positive mammogram.  What is the probability that she actually has breast cancer?
(..)
The right answer is 9 percent.