Ten percent of a company's life insurance policyholders are smokers. The rest are nonsmokers. For each non-smoker the probability of dying during the year is 0.01. For each smoker, the probability of dying during the year is 0.05. Given that a policyholder has died, what is the probability that the policyholder was a smoker?
A) 0.05 B) 0.20 C) 0.36 D) 0.56 E) 0.90

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30-11-2022
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Ten percent of a company's life insurance policyholders are smokers. The rest are nonsmokers. For each non-smoker the probability of dying during the year is 0.01. For each smoker, the probability of dying during the year is 0.05. Given that a policyholder has died, what is the probability that the policyholder was a smoker?
A) 0.05 B) 0.20 C) 0.36 D) 0.56 E) 0.90

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