Part of ALG-04 — Probability & Distributions

Bayes' Theorem Step-by-Step

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Step 1: Identify the partition causessources\frac{causes}{sources} Common setups: multiple bags, machines, factories, or coin types. These are the BiB_i events.

Step 2: Assign prior probabilities P(BiB_i) Often given directly (e.g., "bag chosen with probability 1/3") or derived from proportions.

Step 3: Determine likelihoods P(A|BiB_i) The probability of the observed event given each cause. E.g., P(red|Bag 1) = 3/7.

Step 4: Compute total probability P(A) P(A) = sum P(A|BiB_i)*P(BiB_i). This is the denominator.

Step 5: Apply Bayes' formula P(BiB_i|A) = P(A|BiB_i)*PBiP\frac{B_i}{P}(A)

Example template: Three machines produce 20%, 30%, 50% of items with defect rates 5%, 3%, 2%.

  • P(B1B_1)=0.2, P(B2B_2)=0.3, P(B3B_3)=0.5
  • P(D|B1B_1)=0.05, P(D|B2B_2)=0.03, P(D|B3B_3)=0.02
  • P(D) = 0.01+0.009+0.01 = 0.029
  • P(B1B_1|D) = 0.01/0.029 = 10/29

Common traps:

  1. Confusing P(A|B) with P(B|A) — direction matters
  2. Forgetting to use total probability for the denominator
  3. Not partitioning the sample space correctly

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