Bayes' Theorem
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Example: a disease affects 1% of the population. A test detects 95% of sick people, but also comes back positive for 5% of healthy ones. If your test is positive, what is the chance you have the disease? Here A is “having the disease” and B is “testing positive”. Change the values to work out your own case.
Step by step
What each term means
- Posterior
- The probability of A given that B happened. It updates the belief about A after observing B.
- Likelihood
- The probability of observing B if A is true. It says how compatible A is with the data B.
- Prior
- The initial belief about A before observing B. It may come from previous knowledge or assumptions.
- Marginal (Evidence)
- The probability of observing B across all scenarios; it normalizes the equation. Computed with the law of total probability: P(B) = P(B|A) · P(A) + P(B|¬A) · P(¬A)