Question

Where does Bayes rule can be used?

Answer 1

Bayes rule:

The probability of event $A$ occurring, given event $B$ has occurred is,

$P\left(A|B\right)=\frac{P\left(B|A\right)·P\left(A\right)}{P\left(B\right)}$

Use of Bayes rule:

• To calculate the conditional probability
• In artificial intelligence, to calculate the probability of a robot’s next steps given the steps the robot has already executed.
• In the field of finance, Bayes’ theorem can be employed to rate the risk of lending money to potential borrowers.