Bayes' theorem is expressed as P(A|B) = [P(B|A) × P(A)] / P(B). Here, P(A) is called the: MCQ with Answer and Explanation

Bayes' theorem is expressed as P(A|B) = [P(B|A) × P(A)] / P(B). Here, P(A) is called the:
A. Marginal probability
B. Prior probability
C. Posterior probability
D. Likelihood
Answer: Option B
Solution (By JKExamLibrary)
In Bayesian inference, P(A) is the prior probability, representing initial belief about hypothesis A before observing evidence B; P(A|B) is the updated posterior probability.

This question belongs to: Accountancy and Statistics Statistics

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Statistics Questions

Question #1 Report Error
Which of the following is an example of probability sampling?
A. Judgment sampling
B. Quota sampling
C. Convenience sampling
D. Simple random sampling

Correct Answer: Option D


Explanation:
Probability sampling involves random selection; simple random sampling is a basic method.

This question belongs to: Accountancy and Statistics Statistics
Question #2 Report Error
Which formula fails the Factor Reversal Test?
A. Marshall-Edgeworth Index
B. Both B and C
C. Laspeyres' Index
D. Fisher's Ideal Index

Correct Answer: Option B


Explanation:
Only Fisher's Ideal Index satisfies both the Time Reversal and Factor Reversal Tests; Laspeyres and Marshall-Edgeworth fail the factor test.

This question belongs to: Accountancy and Statistics Statistics
Question #3 Report Error
If P(A) = 0.3, P(B) = 0.4, and A, B are mutually exclusive, then P(A∪B) is:
A. 0.1
B. 0.5
C. 0.7
D. 0.12

Correct Answer: Option C


Explanation:
Mutually exclusive → P(A∪B) = P(A) + P(B) = 0.3+0.4=0.7.

This question belongs to: Accountancy and Statistics Statistics