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Applies Dorfman two-stage pool testing: one test per pool plus individual retests whenever a pool is positive.
Dorfman pooling
Tests per person = 1/k + (1 - (1 - p)^k); the approximate optimal pool size is 1/sqrt(p)
Above roughly 25 to 30% prevalence almost every pool is positive, so pooling costs more tests than it saves.
Yes, dilution raises the detection threshold, which limits practical pool sizes for low viral loads.