Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Suppose you are pricing healthcare for a group of people, which you have roughly divided into high-risk and low-risk. You know the following information: 20%
Suppose you are pricing healthcare for a group of people, which you have roughly divided into "high-risk" and "low-risk". You know the following information:
20% of the population is considered "high-risk".
A "high-risk" person is 6 times as likely to visit the hospital as a "low-risk" person. Use Bayes' theorem to compute the conditional probability that a person is "high-risk" given they make a hospital visit. Round your answer to three decimal places.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started