Bayes' theorem
A)can be used only for cases where conditional probabilities are unknown.
B)cannot be used to calculate posterior probabilities.
C)enables the use of sample information to revise prior probabilities.
D)is useful for determining optimal decisions without requiring knowledge of probabilities of the states of nature.

Question

Quizplus · Accepted Answer

Bayes' theorem enables the use of sample information to revise prior probabilities. It allows us to update probabilities based on new information, which can be useful in decision-making and inference. Option A is incorrect because Bayes' theorem can be used when conditional probabilities are known. Option B is incorrect because Bayes' theorem is used to calculate posterior probabilities. Option D is incorrect because Bayes' theorem is not used to determine optimal decisions without knowledge of probabilities of the states of nature.

Bayes' Theorem