The incidence rate is = 0.4% or 0.004
The false negative rate is = 7% or 0.007
The false positive rate is = 5% or 0.005
The probability is
0.05*(1-0.004) + 0.95*0.004
= 0.0498 + 0.0038 = 0.0536
Probability that a person who tests positive actually has the disease would be represented as:
Let the probability be represented by = p
p * 0.0536 = 0.95 * 0.004
p = 0.0038/0.0536
p = 0.0708
Hence, probability is 0.0708