What is prior probability and what is posterior probability

Assignment Help Applied Statistics

Reference no: EM13911913

1. What is a prior probability? What is a posterior probability?

2. Explain the purpose behind using Bayes' theorem.

METHODS AND APPLICATIONS
3. Suppose that A1, A2, and B are events where A1 and A2 are mutually exclusive and

P(A1) = .8 P(B I A1) = .1

P(A2) = .2 P(B I A2) = .3

Use this information to find P(A1 I B) and P(A2 I B).

Reference no: EM13911913

Questions Cloud

An influenza pandemic as a security risk : What are some of the pro's and con's to defining an influenza pandemic as a security risk?

What is the number of weighted-average shares outstanding : River Bend started the calendar year with 100,000 shares outstanding. An additional 20,000 shares were issued on April 1, and 10,000 shares were reacquired on July 1. What is the number of weighted-average shares outstanding for the full year?

Goods available for sale during the year : The beginning inventory was 300 units at a cost of $10 per unit. Goods available for sale during the year were 1,300 units at a total cost of $14,400.

Cost is based on normal production-allocated fixed costs : The company manufactures a piece Power Ring to $ 3.40 per unit. This cost is based on the normal production of 50,000 units per year. Variable costs are $ 1.50 per unit, fixed costs associated with bringing this piece is $ 50,000 per year and (Alloca..

What is prior probability and what is posterior probability : What is a prior probability? What is a posterior probability? Explain the purpose behind using Bayes' theorem. Suppose that A1, A2, and B are events where A1 and A2 are mutually exclusive.

Enter adjusting entries : Enter adjusting entries for the following items: The December 31 office supplies inventory was $80. The unexpired portion of the prepaid rent was $600 as of December 31. The unexpired portion of the prepaid insurance was $4070 as of December 31.

How value at risk can used by companies to manage exchange : A company experiences transaction exposure when its payables and receivables are impacted by unexpected changes in exchange rates because the contract is in a foreign currency. A company experiences contingent exposure when it has international co..

Instalment-sales method and cost-recovery method : (Instalment-Sales Method and Cost-Recovery Method) On April 1, 2014, Joy Ltd. sold land for $600,000. The note will be collected as follows: $100,000 in 2014, $200,000 in 2015, and $300,000 in 2016. The property had cost Joy $122,000 when it was purc..

Prepare a bank reconciliation as of august : Bank reconciliation. Prepare a bank reconciliation as of August 31 from the following information:

User Account

All Pages