Although Bayes's theorem demands a prior that is a probability distribution on the parameter space, the calculus associated with Bayes's theorem sometimes generates sensible procedures from improper ...

Over the years, many writers have implied that statistics can provide almost any result that is convenient at the time. Of course, honest practitioners use statistics in an attempt to quantify the ...

Bayes' theorem of probability was proposed by English mathematician and clergyman Thomas Bayes in the 1740s, and rediscovered in the 1770s by Pierre Simon Laplace, a French mathematician. It states ...

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 ...

A while back one of my students, “Frank,” a real smarty-pants, started babbling about something called Bayes’ theorem. He wrote a long, dense paper about the theorem’s revelatory power, which had ...

First, we need to estimate the pre-test probability that asymptomatic Massachusetts residents have Covid-19. We know that in the state approximately 2% of all tests for SARS-CoV-2, the virus that ...

Daniel McNulty began writing for Investopedia in 2012. His work includes articles on financial analysis, asset allocation, and trading strategies. Marguerita is a Certified Financial Planner (CFP), ...