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

A two-sample problem for rank-order data is formulated as a two-decision problem. Using the general Bayes solution, Bayes procedures are derived for several configurations of the set of states of ...

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 ...

The Annals of Statistics, Vol. 5, No. 1 (Jan., 1977), pp. 172-181 (10 pages) In the empirical Bayes approach to multiple decision problems, we obtain theorems and lemmas which can be used to obtain ...

This article was published in Scientific American’s former blog network and reflects the views of the author, not necessarily those of Scientific American I’m not sure when I first heard of Bayes’ ...

The stock market is an ever-changing place. In fact, it’s changing every second of every day as prices go up and down, and new factors impact the trajectory of the market. It’s important for investors ...