Lesson 4 of 5 · 15 min

Bayes' formula: updating a probability with new information

Bayes' formula turns a prior probability into a posterior probability by multiplying it by how much more, or less, likely the new information is when the event is true.

In short

  • The prior P(E)P(E) is your belief before the news; the posterior P(E∣I)P(E \mid I) is your belief after it.
  • The likelihood P(I∣E)P(I \mid E) is the probability of seeing the information if the event is true.
  • The unconditional probability of the information P(I)P(I) comes from the total probability rule over all events.
  • Posterior = [likelihood ÷ P(I)P(I)] × prior, which is the same as the event's joint probability divided by the total.
  • If the likelihood is above P(I)P(I), the posterior rises above the prior; if it is below, the posterior falls.

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Bayes' formula: updating a probability with new information · Probability Trees and Conditional Expectations