It is known that \(5 \%\) of the members of a population have disease \(A,\) which
can be discovered by a blood test. Suppose that \(N\) (a large number) people
are to be tested. This can be done in two ways:
1\. Each person is tested separately, or
2\. the blood samples of \(k\) people are pooled together and analyzed.
(Assume that \(N=n k\), with \(n\) an integer.) If the test is negative, all of
them are healthy (that is, just this one test is needed). If the test is
positive, each of the \(k\) persons must be tested separately (that
is, a total of \(k+1\) tests are needed).
a. For fixed \(k,\) what is the expected number of tests needed in option \(2 ?\)
b. Find the \(k\) that will minimize the expected number of tests in option 2 .
c. If \(k\) is selected as in part (b), on the average how many tests does
option 2 save in comparison with option 1?