Bayes' theorem, also called Bayes' rule or Bayesian theorem, is a mathematical formula used to determine the conditional probability of events. The theorem uses the power of statistics and probability ...

Rev. Thomas Bayes (1702-1761), an English clergyman, is credited as the author of “An Essay Towards Solving a Problem in the Doctrine of Chances.” Published posthumously in 1763, the paper set out ...

Learn how prior probability informs economic theory and decision-making in Bayesian statistics. Understand its role before collecting new data.