Question

How can you use Bayes’ theorem in light of new information?

In Bayes’ theorem, how does the prior probability differ from the revised probability?

Answer 1

In the light of new information, we can use Bayes Theorem to find the posterior probabilities. After that, we can plot both prior and posterior probabilities to see how much the prior is deviated from the Posterior probability curve. If they deviate hugely, then we may include new information from the data to the prior to update it and give a more proper form.

In Bayes theorem, the prior probability is solely based on the prior belief. No data comes into play. But, in the revised probability or the posterior probability, the observation comes into play and for this reason, the revised probabilities become more accurate from time to time to work with.