Bayesian Probability
Bayesian probability is an interpretation of the concept of probability where probability is interpreted as a reasonable expectation representing a state of knowledge or as quantifiable uncertainty about a proposition whose truth or falsity is unknown.
Areas of application
- Cognitive science
- Healthcare analytics
- Financial modeling
- Robotics
- Weather forecasting
- Data mining
- Quantum physics
- Information retrieval
Example
For instance, if you have a coin that you are unsure of its bias, you can use Bayesian probability to calculate the probability of it landing on heads based on the number of times it has landed on heads in the past. This approach takes into account the uncertainty in the coin’s bias and provides a more realistic estimate of the true probability of heads compared to a classical frequentist approach.