All you need to know about Bayes' theorem and how it's used to evaluate the probability that financial scenarios will occur.

Bayes' theorem in essence states that the probability of a given hypothesis depends both on the current data and prior knowledge.

Bayes' Theorem has applications in just about every corner of the investing world. It’s not only used to predict the probability of stock price movements.

Reference 2 discusses the application of Bayes’ Theorem to a horse-racing example. In the past, a horse won five out of 12 races, but it had rained heavily before three of the five wins.

For example, a recent and widely used application was spam filtering, where Bayes' theorem helps to "guess" whether an email message is spam or "ham".

Thomas Bayes was an English cleric and mathematician who was interested, among other things, in finding a proof of god. He couldn’t, but he left a treatise and a theorem, which, after it was ...

As one scientist puts it, Bayes' theorem, developed by a Presbyterian minister, isn't clouded by emotion, so it can be revelatory — and may be the best hope of finding Malaysian Airlines Flight 370.

How likely you think something is to happen depends on what you already believe about the circumstances. That is the simple ...

Thomas Bayes was an English cleric and mathematician who was interested, among other things, in finding a proof of god. He couldn’t, but he left a treatise and a theorem, which, after it was ...