Covid-19 is a Black Swan event, so one has to take decisions in an uncertain environment. The government had the task of choosing what path to follow in fighting the disease with little available information. Initially, various experts predicted India was going to be the next hot spot and many had spelt doomsday for India with over 300 million cases and 2 million to 2.5 million deaths in the near future. On the other hand, there were others who thought it won’t be too serious.
In tackling the pandemic, India followed an approach similar to the Barbell strategy in finance – hedging for the worst outcome initially, and updating its response step by step via feedback. Hence, the government announced a complete lockdown in late March, hedging for the worst outcome of millions being infected. The 40-day lockdown period was used to scale up our health infra — building hospitals, procuring and manufacturing testing and PPE kits, educating citizens about social distancing and masks, etc. With time, as our understanding of the pandemic improved, the country started opening up gradually. To date, we have witnessed three stages on Unlock and are currently in the fourth phase. One specific statistics i.e. “proportion of people tested positive out of total tests performed” lies at the heart of understanding the spread of the pandemic. We use Bayes framework to interpret the trajectory of the positivity rate and how it fits with the policy followed.
The ratio of positive cases to tests can be interpreted in terms of “Sensitivity” and “Specificity” of the testing criteria and “Prevalence” of the virus using Bayesian framework. Prevalence is the existing rate of infection in the population, Sensitivity is the ability of a test to correctly identify those with the disease and Specifity relates to the conditions to get oneself tested. At the beginning of the pandemic, it is expected that the proportion of positive cases would increase. But, over time, with decreased specificity along with decrease in prevalence, it should fall. Similar trajectory can be seen for India.
In tackling the pandemic, India followed an approach similar to the Barbell strategy in finance – hedging for the worst outcome initially, and updating its response step by step via feedback. Hence, the government announced a complete lockdown in late March, hedging for the worst outcome of millions being infected. The 40-day lockdown period was used to scale up our health infra — building hospitals, procuring and manufacturing testing and PPE kits, educating citizens about social distancing and masks, etc. With time, as our understanding of the pandemic improved, the country started opening up gradually. To date, we have witnessed three stages on Unlock and are currently in the fourth phase. One specific statistics i.e. “proportion of people tested positive out of total tests performed” lies at the heart of understanding the spread of the pandemic. We use Bayes framework to interpret the trajectory of the positivity rate and how it fits with the policy followed.
The ratio of positive cases to tests can be interpreted in terms of “Sensitivity” and “Specificity” of the testing criteria and “Prevalence” of the virus using Bayesian framework. Prevalence is the existing rate of infection in the population, Sensitivity is the ability of a test to correctly identify those with the disease and Specifity relates to the conditions to get oneself tested. At the beginning of the pandemic, it is expected that the proportion of positive cases would increase. But, over time, with decreased specificity along with decrease in prevalence, it should fall. Similar trajectory can be seen for India.

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