Bayesian statistics is a subfield of statistics that utilizes Bayes' theorem to update the probability of a hypothesis as more evidence or information becomes available. At its core, it combines prior beliefs with new data to form a posterior belief, reflecting our updated understanding. The fundamental formula is expressed as:
where represents the posterior probability of the hypothesis after observing data , is the likelihood of the data given the hypothesis, is the prior probability of the hypothesis, and is the total probability of the data.
Some key concepts in Bayesian statistics include:
This approach allows for a more flexible and intuitive framework for statistical inference, accommodating uncertainty and incorporating different sources of information.
Start your personalized study experience with acemate today. Sign up for free and find summaries and mock exams for your university.