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25 votes
25 votes
15 percent of a certain company's life insurance policy holders are smokers. For each nonsmoker the probability of dying during the year is 0.011. For each smoker the probability of dying during the year is 0.04. Find the probability that a policy holder who died last year was a smoker.

User ATom
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1 Answer

17 votes
17 votes

P=(Percentage_{\text{Smoker Policy Holders}})(Probability_{\text{Smokers Dying}})

Percentage of Smoker Policy Holders = 15% / 100% = 0.15

Probability of Smokers Dying = 0.04

Let's substitute the values to the equation, we get,


\text{ P = (0.15)(0.04) = 0.006}

The probability that a policy holder who died last year was a smoker = 0.006

User Deepanmurugan
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