Bayes Theorem
Bayes Theorem
Basic Theory
Bayes Theorem tells what is the probability of A given B:
Here is the simple proof of Bayes Theorem. We know that the probability of A given B
, or the probability of B given A
is like this:
Therefore we know that:
Simple Example
A typical problem solved by Bayes Theorem is drug testing problem
:
1 | Suppose that a drug test will produce 99% true positive results for drug users and 99% true negative results for non‐drug users. Suppose that 0.5% of people are users of the drug. What is the probability that a randomly selected individual with a positive test is a drug user? |
For this problem, we know that:
Then we can calculate the result like this: