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Figure 2. Graph shows the binormal distribution that best fits the mammography study data. By convention, the distribution of unobserved variables for the patients without cancer is centered at zero (ie, µ1 = 0) with variance equal to 1. For these data, the center of the distribution of the unobserved variables for the patients with cancer is estimated to be 1.59 (ie, µ2 = 1.59) with variance estimated to be 1.54. The binormal distribution can be described by its two parameters (4), a and b, as a = (µ1 - µ2)/ 2 and b = 1/ 2. The four cut points z1, z2, z3, and z4 define the five categories of test results. That is, a variable with a value below the point defined by z1 indicates a normal result; a variable with a value between z1 and z2, a benign result; a variable with a value between z2 and z3, a probably benign result; a variable with a value between z3 and z4, a suspicious result; and a variable with a value above the point defined by z4, a malignant result. Note that the binormal variables exist only in the mind of the reader (ie, they are unobserved). When the reader applies the cut points z1, z2, z3, and z4 to the unobserved variables, we obtain the observed five categories of test results.
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