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