Base-rate effect in a positive study
ID: base-rate-effect-in-a-positive-study
When the prior odds of a real effect are , a study's Type I error is , and its statistical power is , a positive report updates those odds to . This follows directly from Bayes' theorem. A small false-positive rate does not itself make the effect's posterior probability high: the prior odds and power also matter. The posterior exceeds one half exactly when .
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