Bayes’ Theorem is a fundamental principle in probability theory that allows us to update our beliefs based on new evidence.
The formula is:
\[ P(A|B) = \frac{P(B|A) P(A)}{P(B)} \]
Where: - \(P(A|B)\) = Posterior probability (probability of event A given that B has occurred) - \(P(B|A)\) = Likelihood (probability of event B occurring given A is true) - \(P(A)\) = Prior probability (initial belief about A before observing B) - \(P(B)\) = Marginal probability (total probability of B occurring)