Bayes’ theorem, Mathematics

Assignment Help:

Bayes’ Theorem

In its general form, Bayes' theorem deals with specific events, such as A1, A2,...., Ak, that have prior probabilities. These events are mutually exclusive events that cover the entire sample space. Each prior probability is already known to the decision maker, and these probabilities have the following form: P(A1), P(A2),...., P(Ak). The events with prior probabilities produce, cause, or precede another event, say B.
A conditional probability relation exists between events A1, A2, ....., Ak and event B. The conditional probabilities are P(B|A1), P(B|A2), ..., P(B|Ak).

Bayes' formula allows us to calculate the probability of an event, say, A1 occurring given that event B has already occurred with a known probability, P(B). The probability of A1 occurring given that B has already occurred is the posterior (or revised) probability. It is denoted by P(A1|B). Thus, we are given P(A1) and the P(B|A1) which we use to calculate P(A1|B).

For any event Ai, Bayes' theorem has the form

2115_bayes theorem.png

 The probability that A1 and B occur simultaneously is equal to the probability that A1 occurs multiplied by the probability that B occurs given A1. Thus, we have

P(A1 and B) = P(A1) P(B|A1)

Since A1, A2, . . . . , Ak form a partition of the entire sample space when event B occurs, only one of the events in the partition occurs. Thus, we have

P(B) = P(A1 and B) + P(A and B) + .... + P(Ak and B)

We already know that for any event Ai,

P(Ai and B) = P(Ai) P(B|Ai)

When we substitute the formula for P(Ai and B) into the equation for P(B) we obtain

P(B) = P(A1) P(B|A1) + P(A2) P(B|A2) +...+ P(Ak) P(B|Ak)

If we then substitute P(B) and P(Ai and B) into the conditional probability, i.e. P(A|B) =  623_bayes theorem1.png    we obtain the generalized version of Bayes' formula, which is shown in the box.

Bayes' Theorem

P(Ai | B)  = 419_bayes theorem2.png

 

Example 

Suppose that a personnel administrator wishes to hire one person from among a number of job applicants for a clerical position. The job to be filled is fairly simple. On the basis of past experience, the personnel director feels that there is a 0.80 probability of an applicant being able to fill the position. This probability is the prior probability.

A personnel administrator usually interviews or tests each applicant, rather than select one at random. This procedure supplies additional direct information about the applicant. In light of this additional information, the personnel director may revise the prior probability about an applicant's chances for success or failure at the job. The revised probability is the posterior probability.

The terms prior and posterior refer to the time when information is collected. Before information is obtained, we have prior probabilities. Bayes' theorem provides a means of calculating posterior probabilities from prior probabilities. The next example illustrates the use of Bayes' theorem.


Related Discussions:- Bayes’ theorem

Solution to an equation or inequality, First, a solution to an equation or ...

First, a solution to an equation or inequality is any number that, while plugged into the equation/inequality, will satisfy the equation/inequality. Thus, just what do we mean by

Explain histogramsin details, Explain Histogramsin details? Another way...

Explain Histogramsin details? Another way to display frequencies is by using a histogram. The following is an example of a histogram using the data from the previous example:

What is the measure of its width if its length is 3 inches, The perimeter o...

The perimeter of a rectangle is 21 inches. What is the measure of its width if its length is 3 inches greater than its width? Let x = the width of the rectangle. Let x + 3 = th

Comparing, compare 643,251 633,512 and 633.893 the answer is 633.512 what i...

compare 643,251 633,512 and 633.893 the answer is 633.512 what is the question

Three set problems, In a class,there are 174 students in form three,86 stud...

In a class,there are 174 students in form three,86 students play table tennis,84 play football and 94 play volleyball,30 play table tennis and volleyball,34 play volleyball and foo

Inequation, Solve the inequation: |x|

Solve the inequation: |x|

What is the expected value of perfect information, Question: The follow...

Question: The following payoff table shows profit for a decision analysis problem with two decision alternatives and three states of nature. (a) Construct a decision tr

Lower than average, A local police precinct has seen a recent enhance in th...

A local police precinct has seen a recent enhance in the number of complaints filed regarding how officers are interacting with the public. Before addressing the issue, the command

Shares and divend, a company of 10000 shares of rs 100 each declares a annu...

a company of 10000 shares of rs 100 each declares a annual dividend of 5 %.what is the total amount dividend paid by the company

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd