Bayes' Theorem

1. What is Bayes theorem in simple terms?
2. Where is Bayes theorem used in real life?
3. Why Bayes theorem is important?
4. What is Bayes theorem in AI?

What is Bayes theorem in simple terms?

Bayes' Theorem states that the conditional probability of an event, based on the occurrence of another event, is equal to the likelihood of the second event given the first event multiplied by the probability of the first event.

Where is Bayes theorem used in real life?

Bayes' theorem does not only apply in mathematics, but it also has many real life applications such as in Internet Marketing to profile visitors to a website, in Decision Analysis and Decision Trees, the “Two Child Problem” explained in the text above.

Why Bayes theorem is important?

In finance, for example, Bayes' theorem can be used to rate the risk of lending money to potential borrowers. In medicine, the theorem can be used to determine the accuracy of medical test results by taking into consideration how likely any given person is to have a disease and the general accuracy of the test.

What is Bayes theorem in AI?

Bayes' theorem allows updating the probability prediction of an event by observing new information of the real world. Example: If cancer corresponds to one's age then by using Bayes' theorem, we can determine the probability of cancer more accurately with the help of age.