Algorithmic Probability
A mathematical method of assigning a prior probability to a given observation, invented by Ray Solomonoff in the 1960s. It is used in inductive inference theory and analyses of algorithms.
Areas of application
- Data Mining
- Cryptocurrency Mining
- Forecasting and Prediction Models
- Genetic Algorithms
- Quantum Computing
- Financial Markets Analysis
- Information Retrieval
- Social Network Analysis
Example
For instance, algorithmic probability can be used to assign a prior probability to the hypothesis that a coin flip will result in heads, based on the number of times the coin has landed on heads in previous flips.