Drug Testing

Solution part 1: false positive: 99%*1%=0.99%, false negative: 1%*1%=0.01%.)  
 
Solution part 2: true positive: 1%*99%=0.99%, false positive: = 99%*1% = 0.99%, positive = true positive + false positive = 1.98%, P(drug | +) = 0.99%/1.98% = 50%.)
 
Solution part 3: If both athletes dopes, then each has 1%*(100%-1%*50%)=0.95% chance of winning if s/he luckily passes the test, unless the other athlete also passes and beats him/her. If neither dopes, then each has 99%*(99%*50% + 1%)= 49.995% chance of winning by passing the drug test and beating the opponent, or if the opponent fails the drug test. If one athlete dopes and the other doesn't, then the doped athlete has 1%*(99%*75% + 1%) = 0.7525% chance of winning by passing the drug test and beating the opponent, or if the opponent fails the drug test. Similarly, the undoped athlete has 99%*(1%*25%+99%) = 98.2575% chance of winning. So the payoff matrix  is now
 
A/B (%) Drug No Drug
Drug 0.95/0.95
0.7525/98.2575
No Drug
98.2575/0.7525
 
49.995/49.995
 
 
 
Solution part 4: If both athletes dope, then A has 1%*50% = 0.5% chance of winning. Since B cannot be disqualified, s/he will have 1-0.5%=99.5% chance of winning. If only A dopes, then s/he has 1%*75%=0.75% chance of winning. If only B dopes, then A has 99%*25% = 24.75% chance of winning. If neither dopes, then A has 99%*50% chance of winning.
 
A/B (%) Drug No Drug
Drug 0.5/99.5 0.75/99.25
No Drug 24.75/75.25 49.5/50.5
 
As we expected, A is much worse off as a result of drug testing. What's worse, B is better off doping because s/he can't be found out!  The winning strategy is for A not to dope, but for B to dope. If we had tested just B instead, then the entries of the payoff matrix will simply flip.
 
 
Solution part 5: The answer is simply the average of the above payoff matrix (for testing  and its flipped version (for testing B). We get the following table
 
A/B Drug No Drug
Drug 50/50 50/50
No Drug 50/50 50/50
 
Now probablistically it makes no difference whether an athletes dopes or not. In reality being discovered of doping will severly damage the reputation of an athlete. So both athletes will choose not to dope. This scheme only requires one testing per pair. We've accomplished the same goal while saving the cost of drug testing!