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

Find least number of cables required to connect 100 computer, Find out the ...

Find out the least number of cables required to connect 100 computers to 20 printers to assurance that 20 computers can directly access 20 different printers.  Justify your answer.

Multiplication and division should be learnt intermeshed, E1) Do you agree ...

E1) Do you agree that multiplication and division should be learnt intermeshed with each other, or not? Give reasons for your answer.  E2) How would you explain to children wh

Poisson mathematical properties, Poisson Mathematical Properties 1. Th...

Poisson Mathematical Properties 1. The expected or mean value = np = λ Whereas; n = Sample Size p = Probability of success 2. The variance = np = ? 3. Standard dev

The quotient of 3d3 and 9d5 is, The quotient of 3d 3 and 9d 5 is The ...

The quotient of 3d 3 and 9d 5 is The key word quotient means division so the problem becomes 1d 3 -5/ 5. Divide the coef?cients:  1d 3 /3d-5 . While dividing like bases, subt

Evaluate the area of the region, Evaluate the area of the region. a...

Evaluate the area of the region. a. 478 units 2 b. 578 units 2 c. 528 units 2 d. 428 units 2   b. Refer to the diagram to evaluate the area of the shaded

Quantitative method, Year 1 2 3 4 ...

Year 1 2 3 4 5 6 7 8 9 10 Corn revenue 40 44 46

Linear graph, in the form of linear graph interpret the ralationship betwee...

in the form of linear graph interpret the ralationship between two quantities

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