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You are tasked with measuring the risk associated with selling health insurance to potential smokers. You know that: A smoker is 3 times as likely
You are tasked with measuring the risk associated with selling health insurance to potential
smokers. You know that:
A smoker is 3 times as likely to file a claim as a non-smoker.
18% of the population are smokers.
Use Bayes' theorem to compute the conditional probability that a person is a smoker given they filed a claim.
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