The prevalence of breast cancer in women is about 1%. 90% of these women will have a positive result on a mammogram, a breast cancer screening test. Of the women without breast cancer, about 9% will nevertheless have a positive mammogram. This number sounds small, and to the statistically illiterate, may suggest that a positive screening means there is only a 9% chance that it is a false positive.
A way to avoid making mistakes when determining the probability of a false alarm is to use natural frequencies instead of conditional probabilities. Conditional probabilities are expressed in percentages of percentages and quickly become confusing. Using natural frequencies means applying percentages to real numbers to make them more clear. Given that 1% of all women have breast cancer, 9% of all women will screen positive, and 90% of those with cancer will screen positive, a natural frequencies approach gives the following data for a hypothetical sample of 1000 women:
10 of the 1000 have cancer, and 990 of them do not. 9 of the 10 with cancer will screen positive and 1 will not. A total of 90 women will screen positive; since 9 of these have cancer, that means 81 do not. That means a total of 8.1% of all women screened for breast cancer with mammogram will experience a false positive result! 81 out of 90 (90%) of positive results are false.