Answer:
0.99
Step-by-step explanation:
Using Bayes theorem, let A be the event that the email is spam and B is the event that the email contains the word refinance.
A|B is the event that the email is a spam knowing that it contains the word "refinance". We are looking for the probability of this P(A|B)
B|A is the event that the email contains the word "refinance" given that it's a spam. P(B|A) = 0.01
P(A) is the probability that the email is spam = 0.5
P(B) is the probability that the email contains the word "refinance" = 0.5*0.01 + 0.5*0.0001 = 0.00505
Bayes formula
[tex]P(A|B) = \frac{P(B|A)P(A)}{P(B)} = \frac{0.01 * 0.5}{0.00505} = 0.99[/tex]
So the probability that the email is a spam is roughly 0.99