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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: 15%
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:
- 15% of the population is considered "high-risk".
- A "high-risk" person is 4 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.
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