Baye’s theorem, given by Thomas Bayes, is used in statistics to find out the conditional probabilities, i.e., the probability of some even happening given some other event has already happened.
Let there are two play grounds for students in a school, one is concrete and another is grassed.
Probability of concrete playground P(C) = 0.5
Probability of grassed playground P(G) = 0.5
The probability of a child getting hurt in a concrete playground P(H/C) = 0.7
The probability of a child getting hurt in a grassed playground P(H/G) = 0.4
We need to find out the probability of a child playing in the grassed play ground if he comes home hurt, i.e., P(G/H) = ?
Therefore, there are 36.36% chances of a child playing in grassed playground if he is found hurt.
Search & Explore : Management Dictionary
Browse the definition and meaning of more terms similar to Baye’s Theorem. The Management Dictionary covers over 7000 business concepts from 6 categories.
Related Business Content