Page 259 - Probability Demystified
P. 259

Appendix


















                                                                             Bayes’ Theorem


                     A somewhat more difficult topic in probability is called Bayes’ theorem.
                        Given two dependent events, A and B, the earlier formulas allowed you to
                     find P(A and B)or P(B|A). Related to these formulas is a principle developed
                     by an English Presbyterian minister, Thomas Bayes (1702–1761). It is called
                     Bayes’ theorem.
                        Knowing the outcome of a particular situation, Bayes’ theorem enables
                     you to find the probability that the outcome occurred as a result of a
                     particular previous event. For example, suppose you have two boxes
                     containing red balls and blue balls. Now if it is known that you selected a
                     blue ball, you can find the probability that it came from box 1 or box 2.
                     A simplified version of Bayes’ theorem is given next.





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